The Indian government has decided to hike price of diesel every month.

New Delhi, Feb 1/Nationalturk -In what may not be a good news for Indian citizens, the Indian government has decided to hike price of diesel every month.

“Diesel prices in India will be hiked by 40-50 paise per litre every month,” Indian Oil Minister M Veerappa Moily told reporters here today.

He said the hike will continue till losses on country’s most used fuel are completely wiped out. “The Oil marketing companies can increase the diesel price by 40-50 paise per litre every month,” he said.

The diesel is currently being sold Rs. 47.65 in Delhi (Indian capital) and Rs. 53.71 in Mumbai (Indian business hub)

“The Oil companies are currently selling diesel at a loss of over Rs 10.80 per litre in India,” the minister said.

Hike will continue till further orders

He said the hike in diesel prices in small doses will continue till further orders.

The price of petrol in India is purely market-determined while diesel remains mostly under government control. “However, now Oil companies have now some minor freedom to make small revisions to the price”.

According to economic experts, India’s policy to subsidise retail prices of fuels such as diesel and cooking gas is a major drain on the budget of the country.

They said the continuous price hike of diesel may hit the sales of diesel vehicles in India.

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Faiz Ahmad / NationalTurk India News