New Delhi, 12 May-2014(IANS): State-run oil marketing companies (OMCs) Monday hiked diesel price by Rs.1.09 a litre excluding taxes, effective from midnight Monday.
Diesel price hiked by Rs. 1.09/litre effective from tonight midnight
The raise in price was in line with the policy of reducing under-recoveries or losses. The OMCs had last raised diesel rate Feb 28 by 50 paise per litre.
The OMCs had skipped two monthly price revisions earlier due to the election process which ended after last the phase of polling Monday.
“As the proposed (price) change has not been accepted by the Election Commission, the OMCs are required to effect both the price increases together. Further, as a result of non-increase of prices since 1.4.14, there is a small impact which is also required to be passed on in the price of Diesel,” Indian Oil said in a statement.
The government had, in January 2013, permitted OMCs to increase diesel price by small doses of up to 50 paise per litre every month till their losses on this account are completely eliminated.
The OMC added that even after the current price increase, the under-recoveries on diesel still stands at Rs.5.71 per litre.