The Cabinet had in January last year decided that diesel prices should be raised by 40-50 paise a litre every month until losses on the fuel are wiped out. However, oil firms skipped the hikes due on April 1 and May 1 as UPA did not want to take unpopular decision during election season.
The deferred hikes have now been implemented. Before today's increase, diesel prices had risen by a cumulative Rs 8.33 a litre in 14 instalments since January 2013.
There will be no change in petrol rates even though the oil firms were losing about 50 paise a litre due to depreciation in value of rupee against the US dollar.
Oil PSUs IOC, BPCL and HPCL had on April 1 skipped raising diesel rates as per the January 2013 decision of the Cabinet of small monthly raises, on the plea that revenue losses on the fuel have dropped below Rs 6 a litre.
