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Our Bureau

New Delhi , May 22

Close on the heels of increasing the price of petrol sold through its retail outlets, Reliance Industries Ltd (RIL) has increased the price of diesel by Rs 2 per litre plus local taxes. The price increase is effective from Monday.

According to sources, while the minimum impact would be to the tune of Rs 2.36 per litre with the maximum being close to Rs 2.90 per litre.

With effect from May 12, the company had increased the price of domestic petrol by Rs 2 per litre plus local taxes.

This in effect meant that the retail selling price increased from approximately Rs 2.52 per litre to Rs 2.92 per litre, depending on taxes and levies prevailing in different States.

Asked why RIL increased the price while the state-owned companies are still selling the product below cost, the sources said the other companies were in the public sector and the Petroleum Ministry has been taking steps to make good a part of their financial losses.

RIL as a private player had no such protection and had to formulate its own marketing strategy to survive.

No concession

The company does not get any concession on the crude oil, as it was available to the national oil companies and also oil bonds to cut their losses, sources said.

RIL has been seeking compensation of Rs 1,187 crore from the Government for selling products below cost during 2005-06.

This included Rs 103 crore under recovery on petrol and Rs 1,084 crore on diesel.

While RIL retails 342 thousand tonne of petrol and 3,599 thousand tonne of diesel through its 1,300 odd outlets, mostly in the outskirts, the volume of sales by PSU companies — Indian Oil, Hindustan Petroleum, Bharat Petroleum and IBP — is 8,681 thousand tonne petrol and 40,308 thousand tonne diesel.

Related Stories:
New `Reliance Petrol' to cost Rs 2 more

More Stories on : Announcements | Petroleum | Reliance Industries Ltd

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RIL hikes diesel prices by Rs 2/litre

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