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Diesel prices to be hiked by 40-50 paise every month

Until now, diesel vehicle owners in India were enjoying lower fuel rates, but now cheap fuel might become a thing of the past. The prices of diesel will be hiked by 40 to 50 paise-per-liter every month,  till the losses on the fuel are completely wiped out.

Oil minister Veerappa Moily said on February 1, 2013, that until further orders are received, the oil companies have the liberty to increase the prices of diesel by 40-50 paise-per-liter month-on-month. On January 17, 2013, the government decided to move towards deregulating the prices of diesel. The government then freed the state and gave their powers over to the state-owned oil firms.

The state oil firms can now raise the prices of the fuel in small measures every month till the losses are compensated. At present, diesel is sold at a loss of Rs. 10.80 per liter. On January 17, 2013, the price of diesel was hiked by 45 paise. After including VAT, the increase in Delhi became 50 paise. Diesel in Delhi now costs Rs. 47.65 per liter.

Although the first installment of the price hike has been made known, information about the second price increase was not made clear. There was no mention as to when the second increase would be made and what the amounts in question would be.


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