The State Transport Undertaking may start getting cheaper diesel, as Government is re-thinking on its bulk diesel policy.
Petroleum Secretary Vivek Rae said at Petrotech 2014 that the State Transport Units have started buying diesel from retail pumps after Government made diesel price market-linked for bulk customers.
Bulk diesel sales have dropped 89 per cent, Rae added.
However, offering subsidy on bulk diesel would increase subsidy burden on Government as well as upstream companies such as ONGC, OIL and GAIL.
The final decision would be taken by CCEA, Rae added.
Currently, there is a difference of nearly Rs 10/litre on market and subsidised price of diesel.