Diesel prices very likely to be hiked

Diesel prices very likely to be hiked

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While petrol vehicle owners are enjoying a reduction of its prices, diesel fuel owners can now expect a hike in prices. One major question remains: when and by how much? The hike can be enforced tonight or even in a couple of days, by 90 paise per litre or 45 paise per litre.

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In the month of January oil companies were allowed to hike the price of diesel within the range of 40 to 50 paise per litre excluding VAT every month until they are able to neutralize the loss which they suffered on selling the fuel below the market price. Reports have also said that the companies could take a decision soon and the reason might be the elections.

Some reports state that public sector oil marketing companies might increase the prices to the extent that they are able to rationalize the hike, which was not done in April. This translates to April and May increase amounting to 90 paise per litre still being a possibility. The oil retailers Bharat Petroleum, Indian Oil Corporation and Hindustan Petroleum Corporation increased the prices of diesel by 45 paise in the month of March for the last time.

The oil companies wish to increase the diesel prices by Rs. 4.28 per litre, effective on May 1, 2013.