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JUL 02 2013

Diesel prices up by 50 paise

  • Economic Times, ET Bureau / Hyderabad
  • Created: Tue 02nd JUL 2013

Diesel in Delhi will cost Rs 50.84 per litre from tomorrow as against Rs 50.26 currently

Oil marketing companies have decided to go for a 50 paise increase in the retail selling price of diesel, with effect from Tuesday.

This is part of the phase-wise decontrol of diesel prices introduced by the Centre on January 17. The diesel prices in Delhi would now increase to Rs 50.8 a litre. "Under-recovery on sale of retail High Speed Diesel (HSD) has been steadily increasing, due to the depreciation in rupee, coupled with increasing international prices.

Even after the increase, there shall still be an under-recovery on retail selling price of diesel, said an Indian Oil Corporation statement. According to the Petroleum Planning and Analysis Cell under the petroleum ministry, the under-recovery on HSD applicable for the first fortnight of July went up by Rs 2.3 a litre to Rs 8.6 a litre.

This was Rs 6.3 a litre during the second fortnight of June. In the case of kerosene and domestic liquefied petroleum gas, under-recoveries for the month of July increased to Rs 30.7 a litre from Rs 27.8 a litre and to Rs 368.6 a cylinder, from Rs 335.1 a cylinder. OMCs are now incurring combined daily under-recovery of about Rs 358 crore on the sale of diesel, kerosene and LPG.

This is substantially higher than daily under-recovery of Rs 286 crore for the previous fortnight. During the last financial year, companies have reported Rs 1,61,029 crore as gross under-recoveries, against the under-recoveries of Rs 1,38,541 crore incurred during previous fiscal of 2011-12.

In Mumbai, price has been hiked by 62 paisa to Rs 57.61 while in Kolkata it will cost Rs 55.16 a litre from tomorrow as against Rs 54.57 currently. Chennai will see a price increase of 61 paisa to Rs 54.15 a litre.

Despite the sixth increase in diesel rates, oil firms are losing Rs 8.10 per litre on the nation's most consumed fuel.

"Under-recovery on sale of retail diesel has been steadily increasing mainly due to depreciation in rupee coupled with increasing international prices. Even after the aforesaid increase, there shall still be an under-recovery (loss) on retail diesel of Rs 8.10 per litre," IOC said in a statement.

Tags

Delhi Chennai Oil Diesel Oil Marketing Companies Petrol Petroleum Liquefied Petroleum Gas Mumbai Kolkata India

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