Reliance increases diesel prices by Rs 2
Justifying the increase, RIL sources said that the company did not get any concession on the crude oil.india Updated: May 22, 2006 22:24 IST
Even as the Centre raised fuel prices to combat the effect of surging global oil prices, Reliance Industries on Monday hiked diesel prices by Rs 2 per litre as part of efforts to cut down its losses.
The net effect of the prices would vary between Rs 2.39 per litre to Rs 2.92, depending upon the region due to different taxation rates.
About ten days ago, the company had raised petrol prices by Rs 2.5 to Rs 2.92 per litre.
Confirming the diesel price hike, RIL sources justified the decision, saying that RIL was getting neither concession on the crude nor oil bonds (that are given to PSU oil firms) to cut its losses.
Public sector oil firms are losing about Rs 9.33 a litre on petrol, Rs 10.43 per litre on diesel, Rs 17.16 a litre in kerosene and Rs 114.45 per LPG cylinder, making operations unsustainable.
The hike would help Reliance cut losses on retail sales. The company claimed it had lost Rs 1,100 crore last fiscal on selling fuel below the cost price.
Reliance has 1,123 petrol pumps and has already captured 5.5 per cent of market share in petrol sales, and 12.5 per cent in diesel sales.