Price of diesel has been hiked by Re. 1 in the Indian market. State oil firms have hiked the price of diesel from May 11, 2013 and this increase is double from what the Cabinet prescribed, which is a hike of 50 paise per month.
During the month of January, the government gave liberty to state-owned oil firms, who can hike the rates of fuel in small amounts every month until the prices are aligned with market rates. The price hike of Re. 1 accounts for two months as the prices were not hiked in the previous month due to political reasons.
Oil firms then decided to postpone their plan to raise the diesel rates during the month of April. Last month, the hike was not announced as it could have become another reason to oppose and disrupt the crucial budget session of the parliament. Indian Oil Corp explained that the price of diesel is increased by 90 paise per litre and with state levies an increase in Delhi of Rs. 1.01 per litre.
The price of diesel was last revised in March 2013 by 50 paise. The diesel price could not be hiked in April as in the same month the petrol prices were cut by Rs. 3 due to the drop in international prices.