The proof of the Centre's benevolence lies in the absence of any drill to revise prices of controlled products, despite the growing concern over the soaring oil import bill. The oil import bill poised to shoot up to $9.5 billion this year from $6.5 billion last year.

Diesel pricing is another story, however. HSD prices were linked to import prices in September 1997 and the difference between global price trends and the prevailing price athome has been evened out systematically since then.Diesel prices have shot up by more than 12 per cent in the last one month, from roughly $108 a tonne in early March to $122 a tonne now. During its monthly price revision drill, the Oil Coordination Committee (OCC) will have little option, but to pass on the price hike to consumers, unless of course it has a definite directive from the Centre to the contrary. The notification on diesel pricing had a small rider attached, demanding an adjusted import parity in the costing of the product. The `adjusted' import parity mandate prevented the Centre from passing on the benefits of low diesel prices to the consumers for several months last year.

The 10 per cent diesel price drop finally came early in February this year, only to be devoured by the Re 1 cess imposed on the power plant and transportation fuel in the Union Budget on the last day of the month. The Organisation of Petroleum Exporting Countries (OPEC) concurred on a production cut soon afterwards and oilprices went on a spin soon thereafter. On April 19, diesel prices went up again by 3.5 per cent, to even out the difference in the higher March prices in the world market and the domestic price. The nearly 10 per cent increase in the April prices of diesel worldwide since, should logically result in a commensurate hike in diesel prices at home later this month.