Diesel price hike by 50 paisa per litre
New Delhi: Diesel price was on Monday hiked by 50 paisa per litre, the sixth increase in rates this year. The increase in rates will be effective from Monday night, Indian Oil Corp, the nation’s largest oil firm, said.
State-owned oil firms had been in January authorized to raise diesel prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out. Diesel price was last hiked on June.
In Mumbai, price has been hiked by 62 paisa to Rs 57.61 while in Kolkata it will cost Rs 55.16 a litre from Tuesday as against Rs 54.57 currently. Chennai will see a price increase of 61 paisa to Rs 54.15 a litre.
Despite the sixth increase in diesel rates, oil firms are losing Rs 8.10 per litre on the nation’s most consumed fuel. “Under-recovery on sale of retail diesel has been steadily increasing mainly due to depreciation in rupee coupled with increasing international prices. Even after the aforesaid increase, there shall still be an under-recovery (loss) on retail diesel of Rs 8.10 per litre,” IOC said in a statement.
In addition to diesel, oil marketing companies continue to suffer under-recovery (loss) on sale of kerosene of Rs 32.05 per litre and LPG of Rs 368.50 per cylinder.
While petrol price was freed from government control in June 2010, government had in January allowed oil firms to raise diesel price in small dozens of 40-50 paisa a litre every month till such time that losses on fuel sales are wiped out.
“In pursuant to Government order dated January 17, oil marketing companies were authorized to increase the retail selling price of diesel within a small range every month until further order. Accordingly since then, diesel prices are being raised on a regular basis.
“In further continuation of the above, it has been decided to increase the retail selling price of diesel with effect from midnight of July 01/02 by Rs 0.50 per litre (excluding VAT),” IOC said.
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