Diesel price hike by 50 paise likely

The hike is part of phased decontrol of diesel price

The oil marketing companies are likely to announce 50 paise a litre increase in diesel price from Saturday. The government has allowed Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum Corporation to increase diesel price marginally every month.

This is part of phased decontrol of diesel price. The fuel is currently being sold at a revenue loss of Rs 9.74 a litre.

Though this is marginally lower than Rs 10.48 in the fortnight beginning December 16, if the companies continue to increase price by 50 paise every month, OMCs would take at least 19 months to achieve market price for the fuel.