Chart of the day: How diesel prices have doubled in last decade
The latest price hike on sale of diesel may have sparked off a political debate has angered a common man too, but the raise was inevitable to ease economic pressures, say industry captains.
September 14, 2012 / 21:08 IST
Riken Mehta
Moneycontrol.com
The latest price hike of diesel has sparked off a political debate and has angered the common man too. But economists argue that the raise was inevitable to ease economic pressures.With this increment, diesel will now cost Rs 52.45/litre, which is a two-fold jump from Rs 23.29/litre available in September 2002. Based on Kirit Parikh committee's recommendations, the government decontrolled petrol in June 2010, but diesel continued to be subsidized. Oil marketing companies like HPCL, BPCL, IOC were selling the fuel at least Rs 13-15/litre lower than its actual cost. Post the hike in diesel prices and capping of LPG cylinders to 6 per family, OMCs will see their under-recoveries shrink by roughly Rs 20,300 crore in FY13 than the earlier estimation of Rs 1.8 lakh crore.
Here's a snapshot of diesel price movement in the last 10 years. Data Source: www.mypetrolprice.com
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