Diesel prices may be hiked after Presidential elections on July 19 as the Government plans to take bold measures to rein in run-away fiscal deficit.
Diesel prices have not been raised since 25 June last year, and state-owned oil firms sell the fuel at a loss of Rs 10.33 a litre.
“There is no loss on petrol sale currently. But there is excessive volatility both on the rupee and international oil prices” the source said. Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) together are projected to lose Rs 1,49,032 crore on sale of diesel this fiscal.
The source said the oil ministry’s demand for a Rs 1.70 lakh additional excise duty on small diesel cars and Rs 2.55 lakh on medium and large cars was under consideration of the Finance Ministry.
Source: Financial Express