State-owned oil marketing companies (OMCs) have hiked diesel prices by 50 paise a litre while maintaining status quo on petrol prices, while announcing that the hike in the common man’s fuel would be effective from midnight tonight.
The decision to hike diesel prices was taken by OMCs on Saturday in keeping with the norm of increasing it by 50 paise every month till the time the subsidy burden is completely wiped off on the fuel.
The price increase, the 11th since January, excludes local sales tax or VAT and the hike in the national capital will be by 57 paise, including tax, thus taking the diesel price to Rs 53.67 per litre.
There will be no change in petrol prices as oil companies decided not to pass on the 25-30 paise increase necessitated by depreciation of the rupee against the dollar, a statement issued by Indian Oil Corporation (IOC) said.
State-owned oil firms, which revise petrol prices on the 1st and 16th of every month based on trends in oil prices and currency exchange rate in the preceding fortnight, had left the rates unchanged even on November 16.
Petrol prices were last revised on November 1, when it was cut by Rs 1.15 a litre. It costs Rs 71.02 a litre in Delhi currently.
The Government allowed oil companies in January to raise diesel prices in small doses every month to wipe out mounting losses.