Zee Media Bureau
New Delhi: State-owned oil marketing companies on Saturday decided to hike the price of diesel by 50 paise per litre, to be effective from midnight.
The hikes, are excluding state sales tax or VAT and actual increase will be higher and will vary from city to city.
State-owned Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp currently lose Rs 4.41 on every litre of diesel sold.
Since the Cabinet move last year, diesel prices had risen by a cumulative Rs 8.33 a litre in 14 instalments before May 12.
The oil firms, which skipped the monthly hike in April, raised diesel prices by Rs 1.09 a litre soon after the Lok Sabha elections ended on May 12.
Oil marketing companies, effective April 16, now incur a combined daily under-recovery (revenue loss) of Rs 318 crore on the sale of diesel, PDS kerosene and domestic LPG. This is lower than the Rs 342 crore daily under-recovery during the previous fortnight.
With agency inputs
First Published: Saturday, May 31, 2014, 21:41