Petroleum minister M Veerappa Moily today said, Diesel prices will be hiked by 40-50 paise per litre every month till losses on the nation's most used fuel are completly wiped out.

Speaking to reporters in New Delhi Mr Moily said, until further orders, oil marketing companies can increase diesel price by 40-50 paise per litre every month.

Our correspondent reports, the government had on January 17th decided to move towards deregulating or freeing diesel prices from state control and gave powers to state-owned oil firms to raise prices in small measures every month till all of their losses are wiped out.

Mr Moily said the decision to raise diesel prices in small doses every month will stand until further orders.

Jet fuel prices were today hiked by 2 per cent, reversing the two month declining trend in rates.

Aviation Turbine Fuel (ATF) price at T3 terminal in Delhi was hiked by Rs 1324.84 per kilolitre (kl), or 2 per cent, to 67561.04 rupees kl from today, according to Indian Oil Corp, the
nation's largest fuel retailer.

The increase comes on back of successive reductions in December and January when rates were cut by 688.4 rupees per kl and 1472.92 rupees per kl.

In Mumbai, jet fuel will cost 69,826.98 rupees per kl as against 68,446.91 rupees currently.

Rates at different airports vary because of differential in local sales tax or VAT.

No immediate comments were available from the airlines on the impact of the price increase on passenger fares.

The three fuel retailers — IOC, Hindustan Petroleum and Bharat Petroleum — revise jet fuel prices on the 1st of every month, based on the average international price in the preceding month.