Impact of Diesel prices de-regulation in the next six months given current circumstances

Diesel price regulation may sound like good news to Classical Economics theorists but it is going to be bad news for the already inflation hit Indian people.  If the catching up that Diesel prices have to do is on the order of Rs.14 or something like that to a litre on a base of approximately current prices of Rs. 55/litre, what this article fails to highlight is that we are all looking at the basic cost of energy input going up by about 25% in India.  So expect some kind of overnight hyper-inflation to hit really hard.  So far Diesel prices have not been a key factor in the literally run-away food inflation seen especially in the prices of OPTS (onion, potato, tomato and salt), that have in most cases risen by several hundred percentage points.  Imagine when Diesel is the reason, what will happen to food and general inflation.  The worst part is – that all this is primarily due to rupee-dollar depreciation.  The Chinese Yuan at nearly 6.8 to a dollar can buy more cheaper oil for China whereas the Indian rupee’s roller-coaster depreciation on an already depreciated base, is not going to make it easy for the Indian Economy to grow.  Pity India and Indians who studied at Oxford and do not seem to have understood "Economics" properly!