New Delhi: Diesel in Delhi will now cost Rs 55.60 a litre from 58.97 per litre, a decrease of Rs 3.37 a litre.
In Mumbai, the diesel price cut comes to Rs 3.72 a litre and will cost Rs 63.54 a litre. In Kolkata, the price cut comes to Rs 3.51 per litre and in Chennai to Rs 3.65 a litre.
The process to deregulate diesel price was started by the UPA-2 government.
On January 17, 2013, the Cabinet allowed a monthly increase of 40-50 paise per litre in diesel price till under-recovery on it was completely exhausted.
In recent days, there has been a sharp fall in international crude oil prices, which resulted in over-recovery in diesel sale for PSU oil marketing companies.
The government used this as an opportunity to bring the long-pending reform in the oil sector.
However, under-recoveries continue on kerosene and LPG. In the case of PDS kerosene and domestic LPG, the under-recoveries for the second fortnight of October 2014 will be Rs 31.22 per litre (Rs 32.67 per litre last month) and Rs 404.64 per cylinder (Rs 427.82 per cylinder last month).
State-owned fuel retailers IOC, BPCL and HPCL are losing about Rs 139 crore a day on the sale of PDS kerosene and domestic LPG.
