IOC hikes diesel price, third time since January this year

Oil companies on Friday announced a 45 paise per litre hike (excluding VAT) in diesel prices.

Oil companies on Friday announced a 45 paise per litre hike (excluding VAT) in diesel prices.

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After including taxes, diesel in Delhi and NCR will cost 51 to 53 paise more from Saturday, the third increase in the rate of the fuel since January this year.

“Diesel prices will be hiked by 45 paisa (excluding VAT) from Friday midnight,” announced Indian Oil Corp (IOC), the nation’s largest oil firm.

Diesel in Delhi will cost Rs. 48.67 per litre from Saturday as against the current rate of Rs. 48.16.

Interestingly, the decision to hike diesel prices was held back till Parliament was in session in order to avoid any confrontation with the opposition.

Immediately after the Parliament adjourned on Friday for a month-long break, oil firms announced the diesel price hike.

The government had, in January, authorised the state-owned oil companies to hike diesel prices by small doses of up to 50 paisa per litre every month till their losses on the fuel sale were completely wiped out.

Oil firms have accordingly been increasing prices of diesel every month and in equal measure of 45 paisa each for the past three months.

After Friday’s hike, the losses on diesel have come down from Rs. 8.64 per litre to Rs. 8.19 per litre, it said.