Diesel prices go up again by 50 paise a litre

Indian Oil Corporation Ltd, the biggest of the three state-owned oil marketing companies, has increased the retail price of diesel by Rs0.50/litre (excluding state levies) with retrospective effect from 1 December.

The increase follows a government order dated 17 January 2013, under which oil marketing companies have been authorised to increase the retail selling price of diesel within a small range every month until further orders.

Since then, diesel prices for end consumers are being revised every month. Thus IOC effected the increase in retail diesel prices, the state-owned seller said in a statement.

Even after the current increase, under-recovery on the fuel will stand at Rs9.99 a litre, the company said.

IOC is also hit by under-recoveries on the sale of subsidisded kerosene of Rs36.20/litre; and of Rs542.50 per cylinder of domestic cooking gas.

For the year 2013-14, IOC expects to incur under-recovery of around Rs72,000 crore on the sale of these three politically sensitive products. The loss for the oil marketing industry as a whole is estimated at Rs1,39,000 crore.