Diesel price hiked by 50 paise; petrol rates unchanged

Diesel prices were on Saturday hiked by 50 paise per litre but therewill be no revision in rates of petrol this fortnight.
The price increase, the 11th since January, excludes localsales tax or VAT and will be effective from midnight tonight, oil companiesannounced.

The price of diesel in Delhiwill be hiked by 57 paise, including tax, to Rs 53.67 per litre, while it willcost Rs 60.70 a litre in Mumbai as against 60.08 currently.

There will be no change in petrol prices as oil companiesdecided not to pass on the 25-30 paise increase necessitated by depreciation ofthe rupee against the US dollar.

State-owned oil firms, which revise petrol prices on the 1stand 16th of every month based on trends in oil prices and currency exchangerate in the preceding fortnight, had left the rates unchanged even on November16.

Petrol prices were last revised on November 1, when it wascut by Rs 1.15 a litre. It costs Rs 71.02 a litre in Delhi currently.

The government allowed oil companies in January to raisediesel prices in small doses every month to wipe out mounting losses.

While most of the shortfall on diesel sales should have beenwiped out, losses mounted to Rs 14.50 per litre in July-August as the rupeefell about 25 per cent from April levels.

The recent firming up of the rupee against the dollar andthe monthly price increases have trimmed these losses to Rs 9.99 a litre.Diesel rates have risen by a cumulative Rs 6.62 this year.

Indian Oil Corp, the nation's largest fuel retailer, saidthe 50 paise per litre increase in diesel rates was "pursuant toGovernment of India order dated January 17, 2013, whereby oil marketingcompanies have been authorised to increase the retail selling price of dieselwithin a small range every month until further orders."

Accordingly, since then, retail diesel prices are beingrevised every month."Even after the current increase, under recovery (loss)on diesel shall stand at Rs 9.99 per litre," state-owned IOC said in astatement.

The loss on diesel widened from Rs 9.58 at the beginning ofNovember due to depreciation of the rupee.Besides diesel, oil firms lose Rs 36.20 per litre onkerosene sold through the public distribution system and Rs 542.50 per 14.2-kgcylinder of domestic cooking gas (LPG).

The losses on kerosene and LPG have widened from Rs 35.77per litre and Rs 482.50 per cylinder, respectively, at the beginning of themonth.

"For the year 2013-14, the Corporation is expected toincur under-recovery of around Rs 72,000 crore on sale of three sensitiveproducts," the IOC statement said. The combined loss for IOC, Bharat Petroleum Corp andHindustan Petroleum Corp is estimated at about Rs 1,39,000 crore.