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Diesel price was hiked by a little less than 10 paise a litre on Friday after the government raised the commission paid to dealers selling the fuel.
The government has "decided to revise the dealer's commission on diesel from Rs 1,089 per kilolitre (or 1.089 per litre) to Rs 1,186 per kl for the entire country with immediate effect," according to an official statement.
Diesel, which is sold at Rs 53.67 a litre in Delhi, will cost Rs 53.77 after the hike in commission. Diesel prices were last revised on December 1, when they went up by 57 paise.
The commission on diesel was previously revised on October 26, 2012, when it was raised from Rs 912 per kl.
The annual revision was delayed this year because the Model Code of Conduct was in force on account of assembly elections, which ended earlier this month.
"Public sector oil marketing companies were requested by the ministry to rework the quantum of dealer's commission on diesel (as due) keeping in mind escalations that may have occurred in the meantime. The industry worked out the same and submitted its recommendations to the ministry," according to the statement.
The government had on December 10 raised commission paid to cooking gas (LPG) dealers by Rs 3.46 per 14.2-kg cylinder to Rs 40.71. That resulted in the retail selling price of
cooking gas being hiked by Rs 3.50 to Rs 414.