Diesel price hiked by 50 paise; non-domestic LPG cut by Rs 107

NEW DELHI: Oil companies have increased diesel price by 57 paise a litre but cut non-subsidised cooking gas rate by Rs 107 per cylinder in Delhi from Saturday. “We have increased diesel prices by 50 paise per litre in the country exclusive of local levies,” an Indian Oil Corporation spokesman said.

The effective price hike in Mumbai is 63 paise and 50 paise in Kolkata. Oil companies have raised diesel prices by more than 16 per cent since January 17, 2013, after the government allowed retailers to raise its price in small doses every month until pump prices are aligned with market rates.

“Even after the current price increase, revenue loss on retail diesel sale stands at Rs 7.40/litre,” he said. IOC cut non-subsidised cooking gas rates because of a fall in international liquefied petroleum gas, he said. Price of 14.2 kg gas cylinder is reduced to Rs 1,134 from Rs 1,241, he added.

There is no change in the price of subsidised cooking gas, which costs Rs 414 per cylinder in Delhi. IOC is losing Rs 656 per cylinder revenue on subsidised cooking gas. The government on Thursday raised the cap on supply of subsidised cooking gas cylinders from nine to 12 per household in a year, which will increase subsidy on the fuel by Rs 5,000 crore annually.

IOC said it would lose about Rs 73,700 crore revenue for selling diesel, kerosene and cooking gas below market rates in 2013-14 and together with BPCL and HPCL the revenue loss would be around Rs 142,000 crore.