Diesel price raised by 45 paise a litre

State-run oil retailers have increased the retail price of diesel by 45 paise a litre (excluding value added tax) effective midnight tonight.

Oil PSUs had spared diesel in the price hike announced early this month when they raised petrol prices by over Rs2 per litre.

''Indian Oil Corporation Ltd has decided to increase the retail selling price of diesel with effect from midnight of 22/23 March 2013 by Rs0.45 per litre (excluding VAT) in line with the flexibility given by the government to OMCs to revise the diesel prices,'' the company said in a release.

Retail HSD prices were last revised upward by Rs0.45 per litre (excl VAT) on 16 February 2013. 

After the current increase the under-recovery on retail HSD will stand at Rs8.19 per litre, IOC said.

In addition to retail HSD, OMCs are also suffering under-recovery on sale of kerosene (PDS) of Rs33.43 per litre and LPG (Domestic) of Rs439 per cylinder, IOC said.

IOC estimates its current year under-recovery on sale of three sensitive products at Rs86,400 crore and for the three state-run OMCs put together Rs1,63,000 crore.

There was no official communication on the price of diesel sold to bulk consumers. The government has allowed oil retailers to sell diesel at non-subsidised market price to bulk consumers, including the Railways and state road transport corporations.

The companies have been revising bulk prices according to market prices of crude oil.