Zee Media Bureau
Losses on the sale of diesel have dropped to nearly Rs 1.50 per litre, bringing the prospect of deregulation of the nation's most consumed fuel within sniffing distance.
Oil retailers will suffer no losses on diesel after a hike in prices in September, says Goldman Sachs.
That would mean diesel prices charged by retailers could be market-priced by September, the investment bank adds.
At the end of July this year, losses on the sale of diesel stood at Rs 1.33 per litre.
This was made possible because of softening international oil rates and the new government continuing with monthly price increases.
Rates have cumulatively risen by Rs 11.24 per litre in 18 instalments since January 2013 when the previous UPA government had decided on small monthly hikes.
The government had in January 2013 decided to raise diesel prices in small doses of 40-50 paise per litre every month till the losses, which are made good through government subsidy, are completely eliminated.
With agency inputs
