Diesel prices see regular 50 paise hike, but LPG to cost less

India's state-owned oil retailers have announced a 50 paise hike in diesel prices effective from today. State taxes will of course increase prices beyond this at the retail level.

At the same time, the price of non-subsidised cooking gas (LPG) was cut by Rs107 per cylinder on easing international gas rates.

Indian consumers need only buy LPG at market rates if they exceed their subsidised quota, which was recently increased to 12 cylinders a year.

The price of diesel in Mumbai has gone up to Rs63.23 a litre from Rs62.60, and in Delhi by 57 paise to Rs54.91 per litre.

The diesel price hike is in line with the January 2013 decision of the government to raise rates by up to 50 paise per month till the time the entire losses on the fuel are wiped out, and prices made market determined.

Announcing the price hike, Indian Oil Corp, the nation's largest fuel retailer, said that even after the 13th price hike since last January, oil companies are incurring a loss of as much as Rs9.24 per litre on the sale of the fuel.

Officials said there will be no change in petrol rates as current the price is almost in line with the cost.

The standard 14.2-kg cooking gas cylinder will now cost Rs1,241 at non-subsidised rates, down from Rs1,134, in Delhi.