State-run oil marketing companies (OMCs) raised the price of diesel by 50 paisa per litre, the sixth increase in rates since January 2013, when the government allowed these firms to raise the price once every month.
Government allowed state-owned OMCs to raise diesel prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out.
Following the recent hike in price, diesel in Delhi costs Rs 50.84 per litre as against Rs 50.26 earlier.
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.
Even after raising the price of diesel six times since January, state-run OMCs are incurring an under-recovery of Rs 8.10 per litre of diesel sale.
Owing to depreciation of rupee coupled with increasing international prices, under-recovery on sale of retail diesel has been steadily increasing. In addition to diesel, oil marketing companies continue to suffer under-recovery (loss) on sale of kerosene of Rs 32.05 per litre and LPG of Rs 368.50 per cylinder.
Meanwhile, OMCs also raised the price of petrol by Rs 1.82 per litre, excluding VAT, as rupee depreciation made import of raw material (crude oil) costlier.