Saturday brought some relief to consumers as they will now have to pay Rs. 37.50 less on non-subsidised cooking gas (LPG) cylinder.
However, diesel price for bulk consumers such as the railways has been hiked by almost a rupee per litre. But there has been no change in either the retail prices of diesel sold through petrol pumps or rates for subsidised LPG cylinders.
The government had in January allowed state-owned oil firms to sell diesel to all consumers taking supplies from their installations at market price.
Pursuant to the decision, oil companies sold diesel to bulk consumers such as defence, railways and state road transport corporations at a rate of Rs. 58.58 per litre as compared to Rs. 48.16 per litre price of the fuel at petrol pumps in Delhi.
Oil Industry sources said the oil firms on Friday hiked the price of diesel for the bulk consumers by 94 paisa, excluding local sales tax or VAT. The actual increase for consumers will be up to Rs. 1.25 per litre.
The hike in bulk diesel price has been necessitated by the firming up of international oil rates.
This has led to loss on diesel sold through petrol pumps rising to Rs. 11.26 per litre from Rs. 10.72 last month.
Also, oil companies cut the price of cooking gas (LPG) that consumers will have to buy beyond their quota of 9 subsidised cylinders in a year. The non-subsidised LPG will cost Rs. 904.50 per 14.2-kg cylinder as against Rs. 942 a bottle previously.
Just yesterday, the oil companies had raised petrol price by Rs. 1.40 a litre, excluding VAT on firming global oil rates.
The hike in Delhi translated into Rs. 1.68 and petrol now costs Rs. 70.74 a litre in the Capital.
Together with Rs. 1.50 per litre hike in rates effective from February 16, petrol price have been raised by about Rs. 3 per litre in two weeks.
Sources said oil firms continue to incur a loss of Rs. 439 on sale of every 14.2-kg cylinder at subsidised rate of Rs. 410.50 in Delhi. On kerosene, they lose Rs. 33.43 per litre and will end the fiscal with a loss of Rs. 163,500 crore on fuel sales.