Once again, on March 22, 2013, oil companies in India announced a price hike of 45 paise-per-litre for diesel. The hiked prices exclude figures added due to VAT. After including taxes, the price of diesel will cost an additional 51 paise to 53 paise, from March 23, 2013.
India’s largest Oil corporation Indian Oil announced, “Diesel prices will be hiked by 45 paisa (excluding VAT) from Friday midnight”. After the hike, diesel in Delhi will cost Rs. 48.67 per liter from Saturday, against the current rate of Rs. 48.16 per liter.
However, the decision to hike the pries of diesel was held back as a Parliament session was in progress. Thus in order to avoid any confrontation with the opposition, the final decision on the prices was postponed. The Parliament was adjourned on March 22, 2013, after a month long break. In the month of January 2013, the government had authorized state-owned oil companies to hike the price of diesel by a small amount every month.
Oil companies have been allowed to hike the prices of diesel by 50 paise per month until losses on fuel prices were completely wiped out. Moreover, even oil firms have been increasing the price of the diesel every month in equal measures of 45 paise for the past three months.