Diesel price hike capped for oil cos at 50p and Rs 11 by govt

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Govt gives orders to oil cos to stick to a limited mandate vis a vis the buyers. (Reuters) Govt gives orders to oil cos to stick to a limited mandate vis a vis the buyers. (Reuters)
SummaryGovt gives orders to oil cos to stick to a limited mandate vis a vis the buyers.

bought at near market price of Rs 895.50 per bottle.

After today's decision, consumers will get 5 subsidised cylinder instead of 3 in the period to March 31, 2013. From April 1, 2013 they will get 9 cylinders in a year.

The increase in cap would mean an additional subsidy outgo of Rs 9,300 crore annually.

India sets terms for diesel price hikes - source

(Reuters) Government has told state fuel retailers to raise diesel prices by 0.40 rupees to 0.50 rupees ($0.01) a litre every month to gradually align them with market rates, a source privy to the development said on Friday.

The increase excludes value added tax and other taxes in various states.

India has also told fuel retailers to sell diesel, which accounts for 40 percent of fuel consumption in the country, at free market rates to bulk consumers such as industrial clients, the source, who requested anonymity, said.

Government earlier on Thursday had given fuel retailers some leeway to raise prices of diesel, which is heavily subsidised by New Delhi.

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