New Delhi, May 11 (IANS): Diesel price is increased by 90 paise per litre plus taxes from Friday-Saturday midnight, the country's largest oil marketing firm Indian Oil Corporation said Friday.

The company has decided to hike the price after a gap of two months.

Indian Oil Corporation said the Rs.0.90 per litre increase in price would cover the increase of April and May.

“Indian Oil Corporation Ltd. has decided to increase the Retail Selling Price of Diesel w.e.f midnight of 10th/11th May '13 by Rs.0.90/litre (excluding VAT) covering the increase for the months of April and May 2013,” the company said in a statement.

Allowing for local taxes, the new rates for diesel per litre will be at Rs.49.69 in Delhi, Rs.53.97 in Kolkata, Rs.56.04 in Mumbai and Rs.52.92 in Chennai.

IOC said that in line with the government's authorisation to oil marketing companies to increase the price of diesel within a small range every month, "High Speed Diesel (Retail) prices have been raised by Rs.0.45/litre on three occasions i.e. on 18th January '13, 16th February '13 and 23rd March '13."

Revoke diesel price hike: Jayalalithaa

Chennai, May 11 (IANS): Tamil Nadu Chief Minister J. Jayalalithaa Friday demanded revoking of the latest diesel price hike and the powers of the oil marketing companies to determine the fuel price.

In a statement issued here, Jayalalithaa said that at a time when crude oil prices are coming down in the international market and oil companies in India have cut petrol prices twice, the ninety paise hike in diesel prices is not acceptable.

She said the hike in diesel prices will result in inflationary pressures, destroying the economy and impacting the middle and poor income groups.