Diesel price was on Monday hiked by 50 paisa per litre, the sixth increase in rates this year. The increase in rates, which are excluding local sales tax or VAT, will be effective from midnight tonight, Indian Oil Corp, the nation's largest oil firm, said.
Diesel in Delhi will cost Rs 50.84 per litre from Tuesday as against Rs 50.26 currently. Oil firms on Saturday hiked petrol price by Rs 1.82 per litre, excluding VAT, as rupee depreciation made import of raw material (crude oil) costlier.
State-owned oil firms had been in January authorised to raise diesel prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out. Diesel price was last hiked on June. In Mumbai, price has been hiked by 62 paisa to Rs 57.61 while in Kolkata it will cost Rs 55.16 a litre from Tuesday as against Rs 54.57 currently. Chennai will see a price increase of 61 paisa to Rs 54.15 a litre.
Despite the sixth increase in diesel rates, oil firms are losing Rs 8.10 per litre on the nation's most consumed fuel. "Under-recovery on sale of retail diesel 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 (loss) on retail diesel of Rs 8.10 per litre," IOC said in a statement.
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