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Petrol cheaper, diesel hiked 50 paise




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Published on: Thu, 17 Jan 2013 at 15:08 IST
Petrol cheaper, diesel hiked 50 paise
New Delhi: After much anticipation diesel prices have been increased by 50 paise per litre. The prices would be effective from Thursday midnight, while the prices of petrol will be cheaper by 25 paise per litre.

This development comes after the government authorised Oil Marketing Companies (OMC) to hike diesel prices periodically.

OMCs have been asked to hike the diesel prices by 40 to 50 paise every month exclusive of VAT and other levies; a hike which will result to increment of diesel prices by over Rs 6 annually.
Earlier, today, UPA government had partially deregulated diesel prices and announced that now the price of the fuel would be decided by oil companies.

Petroleum Minister M Veerappa Moily told reporters that OMCs have been authorised to make price correction of diesel from time to time as per market conditions. However, this price correction would be in small amounts, he added.

Moily said that the oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs 9.60 per litre loss they incur on the fuel.
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