Diesel rates hiked by 50 paise from midnight tonight

New Delhi, Sep 30: Diesel price was today hiked by 50 paise per litre but there will be no change in petrol rates. Diesel will cost Rs 44.95 per litre with effect from midnight tonight as against Rs 44.45 currently, Indian Oil Corp, the nation's largest fuel retailer, said.

"The current level of international prices and INR-USD exchange rate warrant a price increase, which is being passed on to consumers with this price revision," IOC said.

At the last revision on September 1, petrol price was cut by Rs 2 per litre and diesel by 50 paise. A litre of petrol in Delhi currently costs Rs 61.20.

Oil companies had at the last scheduled review on September 16 put off a 98 paise per litre hike in petrol and Rs 2.28 a litre increase in diesel rates necessitated due to firming global oil rates apparently because of assembly elections in Bihar.

Bihar goes to poll from October 12 and is being considered a major test of popularity for the ruling BJP. This is the first increase in diesel price in four months.

Diesel price was hiked by Rs 2.71 per litre on May 16. Rates have on consecutive fortnights declined. Petrol price since mid-May have been cut by a cumulative Rs 5.09 per litre in Delhi (Rs 7.89 in Mumbai where there was no VAT increase).

Similarly, diesel rates have been cut Rs 7.83 per litre in Delhi (Rs 10.35 in Mumbai).

State-owned fuel retailers -- Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) -- revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.

PTI