Indian Oil Corporation Ltd. has decided to increase the retail selling price of Diesel by Rs.0.50/litre (excluding state levies) with effect from midnight of 31st May/1st Jun’14.

In effect, it implies a rise of 65 to 75 paise per liter.

“The above increase is pursuant to GOI order dated 17th Jan’13, whereby OMCs have been authorized to increase the retail selling price of Diesel within a small range every month until further orders. Accordingly, since then, Retail Diesel prices are being revised every month.

“In continuation of above, Indian Oil Corporation Ltd. has decided to effect the aforesaid increase in Retail Diesel prices. Even after the current increase, under recovery on Retail Diesel shall stand at Rs. 2.80/litre. The Corporation is also suffering under-recoveries on sale of SKO (PDS) of Rs.32.87/litre & LPG (Dom) of Rs. 432.50/cyl. For the year 2014-15, the Corporation is expected to incur under-recovery of around Rs 53,600 crore on sale of three sensitive products (Industry around Rs 1,01,700 crore),” the company said.

HPCL and BPCL will also increase diesel prices at the same time.

Interestingly, petrol prices have not been increased despite a slight increase in the price of petrol. The Indian rupee has risen in value against the dollar, thereby negating the slight increase in dollar denominated petrol prices.

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