Diesel costlier by a rupee/litre
New Delhi: With elections out of the way and no other immediate political compulsions in sight, the public sector oil companies raised the retail selling price of diesel by 90 paise a litre (excluding VAT) from midnight tonight. This is the fourth increase since January.
In a statement issued, Indian Oil Corporation said this hike covered the increase for the months of April and May. With this increase at the retail end, diesel in Delhi will be costlier by a rupee for every litre.
In January, public sector oil marketing companies were allowed to increase the price of diesel in the range of 40 to 50 paise a litre (excluding value added tax) each month till they were able to neutralise the loss suffered on selling the fuel below market price.
However, the companies had not hiked diesel prices since March due to the Karnataka elections. The three public sector oil retailers — Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation — had last increased the retail selling price of diesel by 45 paise a litre (excluding VAT) on March 22-23 in line with the flexibility given to them by the Government to revise diesel prices.
Prior to the latest increase, the desired increase in retail price of diesel was Rs 4.28 a litre effective May 1.