The Election Commission has now told the Ministry that since the revenue loss on the fuel is currently Rs 6.80 per litre, it is for the Oil Ministry to take a decision on raising rates.
“As a sequel to the under-recovery on diesel having fallen below Rs 6 per litre, Ministry of Petroleum and Natural Gas had referred the matter to Election Commission of India on March 31, 2014. Accordingly, PSU oil marketing companies did not increase prices of diesel on April 1, 2014 and May 1, 2014.
“As the proposed change has not been accepted by the Election Commission, the oil marketing companies are required to effect both the price increases together,” said Indian Oil Corp, the nation's largest fuel retailer.
