The Asian Age

Diesel all set to lose sub­sidy

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New Delhi, Sept. 1: Diesel price dereg­u­la­tion looks im­mi­nent after the dif­fer­ence be­tween re­tail sale price and its ac­tual cost dropped to a his­toric low of just 8 paisa.

This is the first time in over a decade that re­tail pump prices are almost in line with im­ported cost of the na­tion’s most con­sumed fuel. Un­der- re­cov­ery or the gap be­tween re­tail sell­ing price and the cost of im­port has dipped to 8 paisa a litre, helped by the monthly in­creases and soft­en­ing in in­ter­na­tional oil rates, an of­fi­cial state­ment said.

If the trend con­tin­ues, diesel price will be at par with in­ter­na­tional rates by next week, not ne­ces­si­tat­ing the next in­crease of 50 paisa a litre due on Oc­to­ber 1. Diesel prices since Jan­uary 2013 have been raised ev­ery month by up to 50 paise per litre to trim the losses. Rates were last raised on Au­gust 31 after which losses had dipped. Rates have cu­mu­la­tively risen by ` 11.81 per litre. Of­fi­cials said the monthly in­creases had trimmed losses to less than ` 3 per litre in May last year be­fore a fall in ru­pee value led to losses on diesel sale widen­ing to ` 14.50 per litre in Septem­ber 2013.

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