Diesel prices hiked for the sixth time this year

July 2, 2013: Close on the heels of the Rs 1.82 per litre hike in the price of petrol on June 29, as a result of the steep rupee depreciation which makes import of crude oil costlier, oil marketing companies (OMCs) have increased diesel fuel prices by 50 paise per litre (excluding VAT). This is the sixth diesel price hike this year.

Following this, diesel will now cost Rs 50.84 per litre in New Delhi, Rs 57.61 in Mumbai, Rs 55.16 in Kolkata and Rs 54.15 in Chennai.

In January this year, the government had allowed OMCs to increase the retail selling price of diesel within a small range every month till their entire losses are wiped out. Since then, HSD (retail) prices are being raised on a regular basis. However, OMCs continue to bear losses on the fuel.

In a statement, Indian Oil Corporation said, “Under-recovery on sale of retail HSD 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 on retail HSD of Rs 8.10 per litre.”