Diesel, petrol prices up as govt hikes dealer commission

Petrol prices have gone up by 41 paise per litre and diesel prices by 10 paise per litre after the government on Friday raised the commission paid to petrol pump dealers.

The 41 paise increase in petrol prices is inclusive of a 20 paise price hike by oil marketing companies.

The price hikes, however, are exclusive of the tax effect and the actual prices may be slightly higher.

Diesel price was last hiked by 50 paise per litre on 30 November, while petrol price was cut by Rs1.15 a litre on 31 October.

Friday's diesel price hike is the twelfth hike since 17 January and is in line with the government's decision to allow oil marketing companies to raise prices in small doses every month to wipe out mounting losses.

The ministry of petroleum said in a statement today that the government has now decided to revise dealer commission from Rs1,089 per kilo litre to Rs1,186 per kilo litre for the entire country with immediate effect. This was last revised on October 2012 from Rs912 per kilo litre to Rs1,089 per kilo litre.

With the latest hike, petrol in Delhi will cost Rs53.77 per litre, against Rs53.67 per litre now.