State-owned oil companies on Friday announced a hike in diesel prices by 50 paise per litre while keeping petrol rates unchanged. The hike, effective Saturday, is excluding local sales tax or VAT and the actual increase will be higher and will vary from city to city.
However, the price of non-subsidised cooking gas (LPG), which customers buy after consuming their quota of 12 subsidised cylinders, was cut by Rs. 107 per cylinder on easing international rates.
The price of diesel in Delhi will be hiked by 57 paise, including tax, to Rs. 54.91 per litre, while it will cost Rs. 63.23 a litre in Mumbai as against Rs. 62.60 at present.
The diesel price hike is in line with the January 2013 decision of the government to raise rates by up to 50 paise per month till the time the entire losses on the fuel are wiped out, and prices made market determined.
Announcing the price hike, Indian Oil, the nation’s largest fuel retailer, said that even after the 13th price hike since last January, oil companies are incurring Rs. 9.24 per litre loss on sale of the fuel.
Officials said there will be no change in petrol rates as current price of Rs. 72.43 a litre in Delhi was almost in line with the cost.
The 14.2-kg cooking gas cylinder that consumers buy beyond their entitled 12 bottles at subsidised rates, will now cost Rs. 1,241, down from Rs. 1,134, in Delhi.