The Asian Age
Diesel all set to lose subsidy
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.