Diesel Prices Hiked by 45 paise/litre

After reducing the petrol prices by up to Rs 2.5/litre, the oil marketing companies have now hiked the diesel prices by 45 paise per litre (excluding VAT), effective from today. This is the third increase in the diesel price since January 17, when Cabinet allowed State oil companies to raise diesel prices in small dozes each month until the losses are covered.

After the local taxes, diesel will now be costlier by 51 paise in Delhi, 57 paise in Mumbai, 55 paise in Chennai and 53 paise in Kolkata, Indian Oil Corporation informs. The diesel prices were supposed to hike on April 16, exact a month after the last hike on February 16, however it delayed possibly due to disrupt it could have created in the parliament session.

Oil companies had cut petrol prices by Rs 2.40/litre on March 16 on account of drop in international crude oil prices by over $5 per barrel. After the current increase the under-recovery on Retail HSD shall stand at Rs.8.19 per litre, so the diesel prices will continue to rise till all the losses are covered.

In addition to Retail HSD, OMCs are also suffering under-recovery on sale of SKO (PDS) of Rs.33.43 per litre & LPG (Dom) of Rs.439.00 per cylinder. Current year estimate of under-recovery on sale of three sensitive products for the Corporation is Rs.86400 crore app (Industry estimate Rs.163000 crore).