losses on sale of diesel have risen to Rs 1.78 per litre after hitting an all-time low, thus delaying the prospect of deregulation of the common man’s fuel.
losses or the gap between retail selling price and the cost of import, had dipped to the all-time low of Rs 1.33 a litre in first half of August, bringing the prospect of diesel decontrol within sniffing distance.
An official statement said the loss has now widened to Rs 1.78 per litre based on average international oil price and foreign exchange rate in the first half of the month.
Diesel prices are raised every month by up to 50 paise per litre to trim the losses. Rates were last raised on August 1 after which losses had dipped to Rs 1.33.
Rates have cumulatively risen byRs 11.24 per litre in 18 instalments since January 2013 when the previous UPA government had decided on small monthly hikes.
The Government had in January 2013 decided to raise diesel prices in small doses of 40-50 paise per litre every month till the losses, which are made good through government subsidy, are completely eliminated.