Diesel price hiked by 45 paisa/litre

Also Read: Oil Min to decide on diesel price after Madras HC hearing

Diesel prices have now been raised for the third time in three straight months by 45 paise a litre. However, the OMCs would still be incurring losses of nearly Rs 1,60,000 crore in FY13.

Another reform introduced by the UPA-II is the sale of bulk diesel to consumers at market-aligned prices. This is where the OMCs are facing a lot of pressure. Two High Courts--one in Tamil Nadu and one in Kerala--have issued a stay order saying that these companies cannot sell to state-owned transportation companies at market rates.

Sources told CNBC-TV18, the oil ministry is looking at the possibility of moving to the Supreme Court. It feels the apex court should be taking up all the reservations by the various state governments.