Oil marketing companies will hike the price of diesel by 45 paise per litre (excluding taxes), effective midnight tonight, Indian Oil said on Friday.The hike comes barely a week after the oil companies had reduced the price of petrol by Rs 2 per litre.
This is the third consecutive price hike for diesel in the last three months.In January this year, the government had allowed the oil firms to raise the price of diesel by 40-50 paisa every month until the companies have wiped out the losses they incur from having to sell diesel at subsidised rates to the public.
The oil firms are currently losing around Rs 11 on the sale of every litre of diesel.
Unlike petrol, prices of diesel, cooking gas (LPG) and kerosene are not decontrolled, and the government has the ultimate control on pricing.
The government subsidises the three products and compensates the oil firms for selling the fuels at lower prices.
In Delhi, diesel price will go up by 51 paisa per litre after including local sales tax or VAT, to Rs 48.67 per litre from tomorrow as against current rate of Rs 48.16.
Diesel will cost Rs 54.83 per litre in Mumbai from tomorrow as against Rs 54.26 currently.