By IANS,
New Delhi : Indian Oil Corp (IOC) raised diesel prices Friday by 45 paise per litre, in line with its policy of reducing under-recoveries or losses.
The diesel hike, that will come into effect from midnight, is the third since January.
“Indian Oil Corporation Ltd. has decided to increase the retail selling price of diesel w.e.f midnight of 22nd /23rd March 2013 by Re.0.45 per litre (excluding VAT) in line with the flexibility given by the government to OMCs (oil marketing companies) to revise the diesel prices,” said an IOC statement here.
Prices were last revised upward by 45 paise per litre (excluding VAT) on Feb 16.
After the current increase, the under-recovery on diesel will be at Rs.8.19 per litre, the statement said.
The price of diesel in Delhi will go up by 51 paise per litre after including VAT, to Rs.48.67 per litre.
In Mumbai, diesel will cost Rs.54.83 per litre from Saturday.
The government had, in January, permited OMCs to increase diesel prices by small doses of up to 50 paise per litre every month till their losses on this account are completely eliminated.
Since then, diesel rates have been hiked by over Rs.1.50 per litre in three instalments.
In addition to diesel, OMCs also incur under-recovery on sale of public distribution kerosene at Rs.33.43 per litre and on cooking gas (LPG) at Rs.439 per cylinder.
“Current year estimate of under-recovery on sale of three sensitive products for the Corporation is Rs.86,400 crore approximately (Industry estimate Rs.163,000 crore),” said IOC.