OMCs increase diesel prices by 50 paise

Oil marketing companies (OMCs) have increased the price of diesel by 50 paise a litre with effect from the midnight of Saturday.

Thus, diesel would cost Rs 53.67 per litre in New Delhi and Rs 60.7 a litre in Mumbai.

Even after the current increase, underrecovery on retail diesel sales will stand at about Rs 10 per litre.

"The increase is pursuant to a Government of India order dated January 17, 2013, whereby OMCs have been authorised to increase the retail selling price of diesel within a small range every month until further orders. Accordingly, since then, detail diesel prices are being revised every month," said IndianOil Corporation (IOC) in a press statement. IOC is also suffering from underrecoveries on sale of kerosene at Rs 36.2 a litre and liquefied petroleum gas at Rs 542.5 a cylinder. For 2013-14, IOC is expected to incur underrecovery of around Rs 72,000 crore on sale of three sensitive products, whereas underrecoveries for the industry would be around Rs 1,39,000 crore. Though the Brent crude oil price saw a 2 per cent fall this week, OMCs did not revise the price for petrol. Crude oil price fell after

Iran reached an agreement with the US, UK, Russia, China, France and Germany to allow inspection of its nuclear sites, while receiving relief on sanctions.