OREANDA-NEWS. Indian Oil Corporation Ltd. has decided to Increase the Price of Diesel (Retail) by Rs. 1.09/litre (excluding state levies) w.e.f midnight of 12th / 13th May, 2014.

In pursuant to GOI order dated 17th Jan'13, OMCs had been authorized to increase the retail selling price of Diesel (Retail) within a small range every month until further orders. Since then, Retail Diesel prices have been revised every month. As a sequel to the under- recovery on Diesel having fallen below Rs 6.00/Iitre, MoP&NG had referred the matter to Election Commission of India on 31.3.14. Accordingly, PSU OMCs did not increase prices of Diesel (Retail) on 1.4.14 and also on 1.5.14.

As the proposed change has not been accepted by the Election Commission, the OMCs are required to effect both the price increases together. Further, as a result of non-increase of prices since 1.4.14, there is a small impact which is also required to be passed on in the price of Diesel (Retail).

In view of the above, it is proposed to increase the prices of Diesel (Retail) by Rs 1.09/ litre (excluding VAT) w.e.f midnight of 12th / 13th May, 2014

Even after the proposed price increase, Diesel (Retail) shall still be left with an under- recovery of Rs 5.71/litre (based on pricing cycle applicable for 1st fortnight of May14).