Diesel prices were hiked by more than a rupee per litre effective from Friday midnight, a move that will burn a deep hole in common man’s pocket through soaring costs of food, transport and essential commodities.
The hike comes after a gap of one-and-a-half months. Country’s largest public sector fuel retailer Indian Oil Corporation (IOC) said the prices were raised by 90 paise per litre. But this excludes the value added tax (VAT) or the local taxes, which vary from state to state.
Accordingly, Diesel will cost Rs 49.69 per litre in Delhi, a hike of Rs 1.02 per litre from the earlier Rs 48.67. In Kolkata, it will cost Rs 53.97 a litre from Rs 52.91, dearer by Rs 1.06 per litre. In Mumbai, it will sell at Rs 56.04 (earlier Rs 54.92) and in Chennai at Rs 52.92 per litre (Rs 51.82).
Diesel prices were last hiked on March 23 by close to 50 paise per litre. The prices were also raised in January and February by a similar rate, but in April, the hike was not effected as Oil Minister Veerappa Moily had informally asked the oil marketing companies to desist from a hike on account of Karnataka elections.
In January, the government had authorised the oil firms to hike prices in small doses until their losses were cut to zero. Prior to this hike, the oil firms were losing Rs 3.80 per litre on diesel. Analysts opine that if global crude prices soften and rupee stays range bound, the losses can be bridged within a year.
They, however, said that the current hike will result in the skyrocketing of the prices of vegetables and food and other commodities as a consequence of the increase in transport price, especially because other state-owned companies – BPCL and HPCL – are expected to toe the IOC line.
–PTI