Following the Government’s decision to allow oil marketing companies (OMCs) to periodically hike diesel prices mainly on a monthly basis, the ‘aam admi’ fuel underwent a price increase of 45 paisa, and subsequently it would cost Rs 48.67 per litre from Saturday onwards in Delhi.
The hike, which is the third such increase since January 2013 when the Government had given the OMCs freedom to do so, would exclude Value Added Tax or VAT, Indian Oil Corporation (IOC) announced.
In Delhi, diesel price will go up by 51 paisa per litre after including local sales tax or VAT, to Rs 48.67 per litre from tomorrow as against current rate of `48.16.
The Government had in January authorised state-owned oil firms to hike diesel prices by small doses of up to 50 paisa per litre every month till such time that their losses on the fuel sale are completely wiped out.
Oil firms, which had hiked diesel prices by equal measure of 45 paisa on January 18 and then on February 16, were to increase the price on March 16 when they had announced a Rs 2.40 per litre cut in petrol prices, however they had deferred a decision on diesel to avoid the Government blushes in Parliament.
With Parliament adjourning on Friday for a month long break, oil firms raised the diesel prices.