State-run oil marketing companies (OMCs) Friday hiked diesel price by 50 paise per litre, effective from midnight, in line with its policy of reducing under-recoveries or losses.

Diesel price was last hiked by 50 paise, excluding VAT, on Jan 4.

Allowing for local taxes, diesel will cost Rs.54.91 in Delhi, Rs.59.50 in Kolkata, Rs.63.23 in Mumbai and Rs.58.56 in Chennai.

The government had, in January 2013, permitted OMCs to increase diesel price by small doses of up to 50 paise per litre every month till their losses on this account are completely eliminated.

  Diesel price, hiked by 50 paise a litre