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Diesel price likely to get reduced
Posted on: 16/Sep/2014 5:44:50 PM
It is likely that the diesel prices may go down by 0.35 paise owing to a fall in global rates. However, oil companies have kept this on hold as they are awaiting an approval by the government.
Considering the first half of September, the under-recovery (difference in price between the imported cost and retail price) was 8 paise per litre. This however turned to be an over-recovery with 0.35 paise per litre during the second half.
When there is such an over-recovery, it is certain that oil companies need to cut down on the cost, but they are waiting for the government’s call about the diesel price, said an official.
This will be the very first reduction in diesel price in the past five years. The price was cut by Rs 2 per litre on January 29, 2009 and was sold at Rs 30.86. Ever since this decrease, the rate kept increasing gradually. The fuel saw an increase in price by 0.50 paise eveyr month from January 2013.
