Diesel prices were hiked by 45 paise per litre with effect from Friday midnight. The hike excludes VAT or local taxes which vary from state to state. A litre of diesel will now cost Rs 48.67 in Delhi after adding the local taxes, as against Rs 48.16 previously.

This is the third hike after the government in January permitted three public sector oil marketing firms, Indian Oil Corporation (IOC), Hindustan Petroleum and Bharat Petroleum, to revise diesel prices by a small quantum every month.

“This is in line with the flexibility given by the government to the OMCs to revise diesel prices,” the country’s largest oil retailer IOC said in a statement. It added that despite the increase, loss incurred by the companies on retail sell of diesel stood at Rs 8.19 per litre.

IOC said petroleum companies are also losing Rs 33.43 per litre on sale of kerosene through the public distribution system and Rs 439 on every 14.2 kg LPG cylinder meant for domestic consumption.