New Delhi: Indian Oil Corporation (IOC) on Thursday cut price of retail diesel in Delhi by 4 paise per litre with effect from Monday, while subsidised LPG rate was hiked by Rs 11.50 per cylinder in the city.
Earlier on March 22, diesel price was hiked nationwide by 45 paise per litre, excluding VAT. It was the third increase in the rate of nation's most consumed fuel since January, 2013. After this hike, price of diesel in Delhi went up to Rs 48.61 per litre. But after Thursday's announcement it will cost 4 paise per litre cheaper.
The government had in January authorised state-owned oil firms to hike diesel prices by small doses of up to 50 paisa per litre every month till such time that their losses on the fuel sale are completely wiped out. Oil firms are likely to end the fiscal with an under-recovery or revenue loss of Rs 1,63,000 crore on diesel, LPG and kerosene sale. Revenue loss for IOC alone is estimated at Rs 86,400 crore.
Meanwhile, the LPG cylinder which earlier cost Rs 410.50, will now have to be bought at Rs 422 per bottle. The government had in September, 2012 fixed a quota of six subsidised LPG cylinders per household in a year but it was increased to nine cylinders in January. On April 1, the price of non-subsidised cooking gas was reduced by Rs 3 per cylinder in line with fall in international rates. A 14.2-kg LPG cylinder that consumers will have to buy after they exhaust their enhanced quota of nine subsidised bottles in a year, will now cost Rs 901.50.
(With additional information from PTI)