A week after petrol prices were reduced, the public sector oil retailers increased diesel retail prices by 45 paise a litre (excluding value added tax) effective midnight/Saturday. This is a second increase in diesel price since February 16th and third since January.
Since any change in diesel price attracts strong political reactions, observers say the companies played it safe and announced the hike after the Budget session of Parliament broke for recess on Friday.
Though there was no official communication on whether the companies had raised the price of diesel sold to bulk consumers, oil retailers have been allowed by the Government sell at non-subsidised market price. The companies have been revising bulk prices accordingly.