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Diesel price hiked by 45 paise a litre Last Updated : 22 Mar 2013 08:40:05 PM IST File Photo
Diesel price was on Friday hiked by 45 paise per litre, the third increase in the rate of nation's most consumed fuel since January.
Diesel price will be hiked by 45 paise, excluding VAT, from midnight tonight, Indian Oil Corp (IOC), the nation's largest oil firm, announced.
In Delhi, diesel price will go up by 51 paise per litre after including local sales tax or VAT, to Rs 48.67 per litre from Saturday as against current rate of Rs 48.16.
The government had in January authorised state-owned oil firms to hike diesel prices by small doses of up to 50 paise per litre every month till such time that their losses on the fuel sale are completely wiped out.
Oil firms, which hiked diesel prices by equal measure of 45 paise on January 18 and then on February 16, were to hike rate on March 16 along with a Rs 2.40 per litre cut in petrol price. But the companies deferred a decision on diesel to avoid the government blushes in Parliament. With Parliament adjourning today for a month long break, oil firms raised diesel prices.
IOC said even after the hike, oil firms are losing Rs 8.19 per litre. In addition, the oil firms are losing Rs 33.43 per litre on sale of kerosene through the PDS system and Rs 439 on every 14.2-kg LPG cylinder sold for domestic consumption.
Oil firms are likely to end the fiscal with an under- recovery or revenue loss of Rs 1,63,000 crore on diesel, LPG and kerosene sale. Revenue loss for IOC alone is estimated at Rs 86,400 crore.
City Current Price Revised Price Increase
Delhi 48.16 48.67 0.51
Kolkata 52.04 52.57 0.53
Mumbai 54.26 54.83 0.57
Chennai 51.23 51.78 0.55
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