Indian Oil to raise diesel prices

REUTERS - Indian Oil Corp (IOC), the country's biggest refiner, will increase diesel prices by 1.2 percent from Tuesday, it said in a statement, within days of raising gasoline prices by 3.3 percent.

The three state-run fuel retailers - IOC, Bharat Petroleum Corp and Hindustan Petroleum Corp - tend to move their prices together.

The government deregulated gasoline prices in June 2010.

In January, India allowed fuel retailers to raise the price of subsidised diesel by 1 cent a litre every month and asked bulk buyers to pay market rates.

In Delhi, diesel will cost 50.84 rupees per litre.

($1 = 59.51 rupees)

(Reporting by Nidhi Verma; Editing by Malini Menon)