Diesel prices slashed due to loss in sales

Diesel prices slashed due to loss in sales

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During recent times, losses has been noticed in the sales of diesel which has led to a record low of Rs. 1.62 per litre. This has increased the chances of the deregulation of the most consumed fuel of the nation. If the Indian rupee continues to strengthen, then a monthly hike of up to 50 paisa per litre is allowed and the prices of diesel will be decontrolled by September 2014.

An employee counts money at a fuel station in Kolkata

A statement was released from the officials which said that the difference between the diesel production and the retail selling price has gone down to Rs. 1.62 per litre from Rs. 2.80 during the first fortnight of June, 2014. The government if Narendra Modi has agreed with the UPA government’s decision of eliminating subsidy with the help of monthly price increase.

Moreover, the international rates have also softened during the first fortnight of June as compared to the second half of May, 2014. After the government of Modi came to power in 2014, the losses in diesel sales remained at Rs. 4.41 per litre.

Officials added that the monthly increases had trimmed the losses to less than Rs. 3 per litre in May 2013 before the fall in rupee. Since March 2014, the losses have gone down rapidly.

Photo Credits: Reuters