New Delhi: Diesel will become costlier by 50 paise per litre excluding taxes from Monday midnight, the country’s largest oil marketing company Indian Oil Corp (IOC) said. The company said despite the increase, marketing firms would continue to incur Rs 8.10 loss on sale of each litre of diesel.
“Under-recovery on sale of retail HSD (high speed 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 on retail HSD of Rs 8.10 per litre,” government-run IOC said in a statement.
Allowing for local taxes, the new price of diesel per litre will be Rs 50.26 in Delhi, Rs 54.57 in Kolkata, Rs 56.99 in Mumbai, Rs 53.54 in Chennai, Rs 54.79 in Hyderabad and Rs 54.80 in Bangalore. IOC last hiked diesel rates May 30 by 50 paise per litre, and of petrol by 75 paise, mainly due to depreciation of the rupee against the US dollar.
Oil marketing companies (OMCs) have been authorised to increase the retail selling price of diesel within a small range every month. ‘OMCs, effective July 1, are incurring combined daily under-recovery of about Rs 358 crore on the sale of diesel, PDS kerosene and domestic LPG. This is substantially higher than daily under-recovery of Rs 286 crore for the previous fortnight,’ the petroleum ministry said Monday.
Meanwhile, the Supreme Court Monday issued notice to the government on a PIL seeking an end to the subsidy on diesel and enforcement of Euro-V emission norms for all vehicles running on diesel.
Petitioner Arvind Gupta’s plea seeks a market-determined price mechanism for diesel used in commercial enterprises, calling for discontinuation of supply of subsidised diesel to ‘undeserving sections of society’ particularly owners of luxury cars, telecommunication towers of private sector, malls, supermarkets, and five-star hotels and resorts.