Diesel has become costlier again as Indian Oil has raised the prices by 50 paise (excluding taxes) a litre with effect from midnight of Satrurday-Sunday.
With this increase, the effective price in Delhi would be Rs 57.28 a litre against existing price of Rs 56.71. A statement issued by Indian oil said that the above increase is pursuant to Government's order dated January 17, 2013 whereby oil marketing companies (Indian Oil, Hindustan Petroleum and Bharat Petroleum) have been authorized to increase the retail selling price of Diesel within a small range every month until further orders. Accordingly, since then, Retail Diesel prices are being revised every month, it added.
The company said that even after the current increase, under recovery on Retail Diesel shall stand at Rs. 2.80 per litre. The Corporation is also suffering under-recoveries on sale of kerosene (sold at Public Distribution System stores) of Rs.32.87 per litre & domestic cooking gas or LPG of Rs. 432.50 per cylender.
For the year 2014-15, the Corporation is expected to incur under-recovery of around Rs 53,600 crore on sale of three sensitive products while for the entire industruy, this amount would be approximately Rs 1.01 lakh crore