Monday, 1 July 2013

Diesel price hiked by 50 paise per litre from tonight



As expected, Diesel prices were due for a hike wef tonight, today being the last day of the month. The fuel would be 50 paise costlier from tonight, a sixth increase in price this year.

The increase in rates, which are excluding local sales tax or VAT, will be effective from midnight tonight, Indian Oil Corp, the nation's largest oil firm, said. Diesel in Delhi will cost Rs 50.84 per litre from tomorrow as against Rs 50.26 currently.

Oil firms on Saturday hiked petrol price by Rs 1.82 per litre, excluding VAT, as rupee depreciation made import of raw material (crude oil) costlier. State-owned oil firms had been in January authorised to raise diesel prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out.

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.

Meanwhile, Petrol was increased by INR 1.82 per liter just two days back.

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