You are using an older browser version. Please use a supported version for the best MSN experience.

Diesel prices hiked by 50 paise per litre

LiveMint logoLiveMint 31-05-2014 PTI

New Delhi: Diesel prices were on Saturday hiked by 50 paise a litre, excluding state levies, the second increase in rates three weeks.

The monthly hike in price came after several rounds discussions that the new oil minister Dharmendra Pradhan held with state-owned oil firms on continuing with the reform initiated by the United Progressive Alliance (UPA) government. The announcement of the hike gave clear indications that the Bharatiya Janata Party (BJP) government will continue with reforms of the previous Congress regime.

The UPA had in January 2013 decided to raise diesel prices in small doses of up to 50 paise every month till such time that the subsidy on nation’s most consumed fuel is eliminated. The hikes, effective from midnight tonight, are excluding state sales tax or value-added tax (VAT) and actual increase will be higher and will vary from city to city, the oil companies announced.

Diesel price in Delhi will be hiked by 57 paise after including taxes, to Rs57.28 per litre, while it will cost Rs65.84 a litre in Mumbai as against Rs65.21 at present.

Prices of diesel were last hiked on 13 May when rates went up by Rs1.09 a litre, excluding local levies. That hike which translated into Rs1.22 in Delhi after including VAT, made up for rate hikes for two months as government deferred rates in April due to general elections.

Before Saturday’s increase, diesel prices had risen by a cumulative Rs9.55 a litre in 15 instalments since January 2013. “Even after the current increase, under recovery (loss) on retail diesel shall stand at Rs2.80/litre,” Indian Oil Corp. Ltd, the nation’s largest oil firm, said in a statement announcing the hike.

Besides diesel, the oil firms are losing Rs32.87 a litre on kerosene and Rs432.50 on LPG (per cylinder). “For the year 2014-15, the Corporation is expected to incur under-recovery of around Rs53,600 crore on sale of three sensitive products (Industry around Rs101,700 crore),” the statement said.

More From LiveMint

image beaconimage beaconimage beacon