India has hiked petrol and diesel prices twice this year by about 17 percent, following the spiraling cost of crude oil in the international market.

They also say that freight rates are usually governed by what their competitors-ie, truckers-charge. When higher diesel costs put up trucking rates, the railways follow suit.

The price of diesel fuel, which affects many businesses, especially those that rely heavily on transportation and shipping, fell to $4.065 from $4.076 a gallon.