Diesel prices have been hiked by Rs1.09/litre by several oil companies. The current diesel price hike excluded local taxes. This was the first hike in over a month and would be effective from Monday midnight.
The companies decided not to hike the price in April 2014. The oil companies skipped the monthly hike of 40-50 paisa a litre on the pretext that losses have dropped below Rs 6. According to officials, Rs 6 was the subsidy that an expert committee headed by Kirit Parikh had suggested should be provided by the government.
Earlier in May, 2014, oil companies said they were suffering losses of Rs 6.80 per litre on diesel sales.
The Cabinet had in Jan, 2013, decided that diesel prices should be raised by 40-50 paise a litre every month until losses on the fuel are wiped out. Diesel prices have risen by a cumulative Rs 8.33 a litre in 14 instalments since Jan 2013.
(With agency inputs)