A Rs 3.56 per litre cut in diesel prices is in the offing as slump in international oil prices have helped nearly doubling of profit on Indias most consumed fuel. With crude prices dipping to four-year low, the over-recovery or profit on diesel sales , which was Rs 1.90 a litre in first half of October, has now climbed to Rs 3.56 per litre, an official statement said in New Delhi. State-owned fuel retailers made their maiden profit on diesel in second half of September with a modest over-recovery of 35 paise. This swelled to Rs 1.90 in first half of October and stands at Rs 3.56 per litre now. Over-recovery or profit should have in natural course translated into a price reduction to bring retail selling price at par with cost. But rates have not been cut due to election code being in force for the assembly polls. The Model Code of Conduct will be lifted with the announcement of results of elections to Maharasthra and Haryana assembly on Sunday. Sources said since reduction in rates of a commodity controlled by the government could have been seen as a move to lure voters, the Election Commission did not give permission to reduce rates. Petrol, on the other hand, is a deregulated commodity where oil companies enjoy pricing freedom. As a consequence, oil companies have cut rates half a dozen times during recent months in step with international trend. Rates were last cut by Re 1 a litre yesterday. Benchmark Brent crude oil declined as much as $1.06, or 1.3 per cent, to $82.72 a barrel in the London markets, the lowest since November 2010. Softening international oil rates have meant that diesel under-recovery or the difference between retail price and its imported cost was wiped out and there was an over-recovery of 35 paise a litre from September 16. This over-recovery became Rs 1.90 a litre on October 1 and Rs 3.56 now. But under-recoveries continue on kerosene and LPG. In the case of PDS Kerosene and Domestic LPG, the under-recoveries for the 2nd fortnight of October 2014 will be Rs 31.22 per litre (Rs 32.67 per litre in last month) and Rs 404.64 per cylinder (Rs 427.82 per cylinder in last month), respectively, the statement said. State-owned fuel retailers - IOC, BPCL and HPCL are losing about Rs 139 crore a day on sale of PDS kerosene and domestic LPG. This is lower than Rs 156 crore daily under-recoveries during previous fortnight, it said. Oil firms revise rates of petrol and diesel on 1st and 16th of every month based on average international oil rates and foreign exchange rates in the preceding fortnight. The same in case of LPG and kerosene is done once a month. inShare.1MailPrintTags: diesel prices | international oil prices | assembly polls | Election Commission | petrol prices Previous Story Economic performance may upset optimists initially: S&P Advertisement:Replay Ad by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted Links YOU MAY LIKEFrom The Web Newsmax‘Warren Buffett Indicator’ Signals Collapse in Stock Ma…NewsmaxZigwheelsShow Girls at the 2014 Auto Expo: In Pictures!ZigwheelsCFOTwo-Thirds of Americans Favor Tougher Anti-Ebola …CFOThePostGameUnbelievable: One-Third Of WrestleMania VI Co…ThePostGameWomanitely10 Worlds Oldest CitiesWomanitelyFinancial TimesWhy Students Are Fleeing The Chinese Educational SystemFinancial TimesAmerikanki9 Best Foods to Eat for Healthy Eyes AmerikankiTechnical Analysis of StocksStocks to Buy Now in IndiaTechnical Analysis of StocksSponsored LinksSponsored Links Promoted LinksPromoted LinksFROM THE WEBFROM INDIA TODAY GROUP•‘Warren Buffett Indicator’ Signals Collapse in Stock Market (Newsmax)(Newsmax)•Reasons Why You Should Not Host Your Own Video (Marketing Technology Blog)(Marketing Technology Blog)•6 Useless Exercises You Probably Do (ThePostGame)(ThePostGame)•7 Wonderful Foods That Will Give You Great Skin (Womanitely)(Womanitely)•Why Students Are Fleeing The Chinese Educational System (Financial Times)(Financial Times)•Top cars in your budget: Rs 3-8 lakh•How to claim income tax deductions•How JK Lakshmi Cement is among best performing stocks•How much capital gain tax do I need to pay for ancestral agricultural property?•You can now file for PF account transfer onlineby Taboolaby Taboola Post to Facebook Sign inSign in Sign in Sign in Logout inSign in with LinkedIn.or Fill These Fields Name: E-mail: Enter the Code Shown: Post comments on this story Post to Facebook Name : Email : Enter the Code Shown: Advertisement TOP NewsMust ReadIndia witnessing rise in growth, easing inflation: RajanDiesel prices may be cut by Rs 3.56 per litre PM Modi to add more state wins before reforms pushGovt doubles profit on diesel as crude oil prices fallGold, silver prices rise on festive demand, global cuesMore How older B-schools are boosting their brand Dont be in a hurry to exit from a fund IIFM offers up-to-date resources to students Industry leaders suggest how Make in India can succeed AIPM-Delhis curriculum makes it stand out TECH TRACKER Google Nexus 6, 9 may hit Indian market in Nov Google tests waters for ultra-fast wireless service Apple Pay rumoured to be launched this week MOREINSIGHTDont be in a hurry to exit from a fund Hemant RustagiThe digital battlefield: Goliath strikes back Sameer AroraMission Skill, Speed and Scale needs to move to next orbit Sanjiv KatariaExit polls could be big trigger for stock market this week Arun KejriwalMoreDont Miss Business Todays annual B-schools survey becomes BIGGER & BETTER Top 5 smartphones under Rs 20,000 No Skype calls within India from November 10 Business Today-YES Bank Survey on Indias Best CFOs 2014 1234 PrevNextPhotosVideosGear S: The smartwatch that makes callsThe sleek and stylish Samsung Galaxy Note 4Tata JLR hits the brand milestoneMore Bridge School aims to provide productive manpower to corporatesHow Onyx Education banks on virtual learning platforms Productivity of Bengal has been good More
Posted on: Thu, 16 Oct 2014 12:18:48 +0000
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