Diesel price hiked again, this time by 45p/ltr

Diesel price was today hiked by 45 paisa per litre, the third increase in the rate of nation's most consumed fuel since January.

Diesel price will be hiked by 45 paisa, excluding VAT, from midnight tonight, Indian Oil Corp (IOC), the nation's largest oil firm, announced.

In Delhi, diesel price will go up by 51 paisa per litre after including local sales tax or VAT, to Rs 48.67 per litre from tomorrow as against current rate of Rs 48.16.

The government had in January authorised state-owned oil firms to hike diesel prices by small doses of up to 50 paisa per litre every month till such time that their losses on the fuel sale are completely wiped out.

Oil firms, which hiked diesel prices by equal measure of 45 paisa on January 18 and then on February 16, were to hike rate on March 16 along with a Rs 2.40 per litre cut in petrol price. But the companies deferred a decision on diesel to avoid the government blushes in Parliament.

With Parliament adjourning today for a month long break, oil firms raised diesel prices.

IOC said even after the hike, oil firms are losing Rs 8.19 per litre.

In addition, the oil firms are losing Rs 33.43 per litre on sale of kerosene through the PDS system and Rs 439 on every 14.2-kg LPG cylinder sold for domestic consumption.

Oil firms are likely to end the fiscal with an under- recovery or revenue loss of Rs 1, 63,000 crore on diesel, LPG and kerosene sale. Revenue loss for IOC alone is estimated at Rs 86,400 crore.

Since January, diesel price has been hiked by over Rs 1.50 per litre in three instalments.

Diesel will cost Rs 54.83 per litre in Mumbai from tomorrow as against Rs 54.26 currently.

IOC said diesel prices have been hiked with effect from midnight tonight by "Rs 0.45 per litre, excluding VAT, in line with the flexibility given by the Government to oil marketing companies (OMCs) to revise the diesel prices."

... contd.

ALSO READ

Govt aims to bring down CAD to 2.5% by 12th Plan-end, says Montek

Raghuram Rajan not in favour of sovereign bond to finance CAD

Airfares: Travel agents to keep shutters down on Tuesday

Companies expand background check on jobseekers