Diesel price deregulation looks imminent after the difference between retail sale price and its actual cost dropped to a historic low of just 8 paise.
This is the first time in over a decade that retail pump prices are almost in line with imported cost of the nation’s most consumed fuel.
Under-recovery or the gap between retail selling price and the cost of import has dipped to 8 paisa a litre, helped by the monthly increases and softening in international oil rates, an official statement said here.
If the trend continues, diesel price will be at par with international rates by next week, not necessitating the next increase of 50 paisa a litre due on October 1.
Diesel prices since January 2013 have been raised every month by up to 50 paise per litre to trim the losses. Rates were last raised on August 31 after which losses had dipped.
Rates have cumulatively risen by Rs 11.81 per litre in 19 instalments since January 2013 when the previous UPA government had decided on small monthly hikes.
