Reliance hikes diesel price by Rs 2/lt

Reliance Industries (RIL) has raised the price of diesel by Rs 2 per litre. The net effect of the price hike would vary between Rs 2.36-2.97 per litre depending on the region due to different tax rates.

RIL had increased the price of petrol by Rs 2.52- 2.92 per litre 10 days
ago.

The annoucement of the diesel price hike came when the Centre is mulling raising the fuel prices to combat the effect of surging global price.

Confirming the diesel price hike, RIL sources said the company was getting neither concession on the crude nor oil bonds to cut its losses. "RIL is buying crude from the competitive international market while the public sector companies are buying it at reduced rate. Oil bonds are also limited to PSU firms," they added.

The hike would help Reliance cut losses on retail sales. The company claimed it had lost Rs 1,100 crore last fiscal on selling fuel below the cost price. Reliance has 1,200 petrol pumps across the country, and has already captured 5.5% of market share in petrol sales and 12.5% in diesel sales.