Stating that the subsidised diesel was taking a toll on the health and environment, the Economic Survey strongly pitched for not only a hike in prices of diesel but also called on the government to pay a fixed amount per litre as diesel subsidy to contain the ballooning subsidy bill.

“For diesel, where even the rudimentary first step for freeing prices has not yet occurred, a possible intermediate step is to fix a per litre subsidy from the government.