fuel price rise

Hi,
Indian government has announced a 10% fuel price hike, they would explain the reasons behind this later in the day.
In a way this was a good move, there was no point in over burdening the oil companies. with crude oil prices rising by 35% in last one year a fuel price hike of 10% seems ok.
This should have an adverse impact on the Indian economy in the near future as inflation, which has currently crossed 8%, would shoot up further as tranportation costs, mainly food and utilities, would go up. In the long run however it should get settled.
Have a different view on subsidy on diesel: The subsidy should be applicable to only tranporters while private car owners should pay the full cost of diesel. This I feel would be healthy for the economy as on one hand we are trying to curtail inflation by subsidising diesel at the cost of other economic sectors, while on the other hand the subsidy is being used by the private car owners. In a way the tax payers money is going into the pockets of a rich guy driving a diesel powered mercedes or toyota and not benefitting the masses. The rich would keep getting richer as the poor keep getting poorer. Feel that this is incorrect and that the government should change in stand on subsidy of diesel or increase taxes/duties on sale of diesel powered private cars so that this anomaly is removed.