The price of diesel was hiked by 45 paise per litre across the nation, excluding VAT, on March 22. It was the third instance of increase in diesel price since January this year. The price of the country's most-consumed fuel went up to Rs 48.61 per litre but Thursday's announcement will bring it down by four paise a litre.
The government had authorized state-owned oil firms to increase diesel prices by small amounts upto 50 paise per litre every month till the firms' losses on the sale of the fuel were completely overcome. The oil firms are likely to finish the current fiscal with a revenue loss of Rs 1,63,000 crore on fuel like diesel, LPG and kerosene. IOC's revenue loss alone is estimated at Rs 86,400 crore.
Meanwhile, an LPG cylinder which had earlier cost Rs 410.50 will now cost Rs 422. The government had fixed a quota of six subsidized LPG cylinders per household last September but the cap was later increased to nine in January this year following a lot of debate. The price of non-subsidised cooking gas was decreased by Rs 3 per cylinder in line with the falling international rates.