The government raised the price of diesel by five rupees a litre late Thursday.
The price of diesel is regulated and kept much lower than gasoline prices in India.
But the government has been under intense pressure to reduce its fiscal deficit by cutting spending for subsidies, particularly on fuel.
The government has also announced a reduction in cooking gas subsidies.
The move faces sharp criticism because of the impact it will have on India's poor and middle class.Suggest a correction