Diesel price goes up by 90 paise per litre

State-run oil marketing companies today announced a 90 paise per litre hike in the price of diesel effective midnight tonight.

This is the fourth time OMCs are raising diesel prices since January when the government permitted a 45-50 paise per litre increase in diesel prices every month till such time that the prices are on par with market rates.

Diesel prices were last increased in March by 45 paise. There was no hike in prices since although the OMCs reduced the price of petrol thrice.

''In pursuant to GoI order dated 17 January 2013, OMCs were authorised to increase the retail selling price of diesel within a small range every month until further order. Accordingly since then, HSD (retail) prices have been raised by Rs0.45/litre on three occasions, ie, on 18 January 2013, 16 February 2013 and 23 March 2013,'' Indian Oil Corp, the country's top oil PSU said in a release.

''In further continuation of the above, Indian Oil Corporation Ltd has decided to increase the retail selling price of diesel with effect from midnight of 10/11 May 2013 by Rs0.90 per litre (excluding VAT) covering the increase for the months of April and May 2013,'' it added.

OMC say they continue to lose around Rs6 on the sale of each litre of diesel, which is still subsidised. Along with diesel, the government also regulates selling prices of cooking gas (LPG) and kerosene, and compensates the oil firms for the losses.

The price of petrol, however, is market driven and is revised every fortnight in line with international rates.

OMCs had reported under-recoveries on sale of the three products of around Rs1,60,000 crore.