Chart of the day: How diesel prices have doubled in last decade

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