With the rupee continuing to remain weak against the dollar, losses on diesel have climbed to R9.45 per litre, upsetting the government's subsidy math.
"We are now losing R9.45 per litre on diesel as against R8.60 (in the previous fortnight)," said PK Goyal, director (finance), IOC.
The government in January decided to raise diesel prices by 40-50 paise a litre every month till losses on the fuel are wiped out. In fact, regular hikes brought down the losses on diesel to just R2.62 in March. But with the rupee dropping below 60, losses have now climbed back to R9.45.
The next revision in the price of diesel is due at month end.