With the Budget session of Parliament going into a recess, oil marketing companies (OMCs) have decided on a 45p a litre rise in diesel prices from midnight.
This would be the third increase after the government allowed a phased decontrol of diesel prices on January 17. Retail prices were earlier revised upward on February 16, by 45p a litre. After the latest rise, the OMCs underrecovery on diesel would be Rs 8.19 a litre, an Indian Oil Corporation statement said. The other two OMCs, both also government-owned, are Bharat Petroleum and Hindustan Petroleum.
The government was allowing a monthly cycle for raising the price (of 45-50p a litre at a time) and one was due on March 15 or 17. It was believed the OMCs were waiting for the Budget session to get over. After the rise, the diesel price in this city will be Rs 48.67 a litre, as against Rs 48.16 now.