NEW DELHI, November 6: Retail prices of high speed diesel (HSD) have come down by five paise in New Delhi, Chennai and Calcutta and by six paise in Mumbai with effect from midnight tonight.

The Centre tonight decided to implement its decision on September 1, to revise diesel prices monthly, so that there was parity between domestic and international rates. The slide in international oil prices in September prompted the Oil Coordination Committee (OCC) to revise the prices of diesel, to ensure import parity.

The committee, said an official spokesman, would continue to make such adjustments of high speed diesel prices, so that domestic rates were in tune with international prices. The Centre also decided to raise dealer commission, in keeping with the recommendations of a committee set up to look into the grievances of oil dealers.

An official release says ``after adjusting the incremental dealer commission,'' the retail selling prices of HSD would drop by five paise in three metropolitans and six paise in Mumbai. After the Centre withdrew the roughly Rs 1.80 per litre subsidy on HSD on September 1, diesel prices increased to Rs 10.34 per litre from Rs 8.18 per litre in Delhi. Tonight's decision brings down diesel prices to Rs 10.29 per litre. Similar adjustments will be made in Mumbai, Calcutta and Chennai.

Meanwhile, the government has abolished the existing slab system of commission for dealers of motor spirit and LPG and decided to do away with the system for HSD dealers in phased manner.

It has also revised the rates for commission. The commission for MS87 has been fixed at Rs 409 per Kl, MS93 Rs 446 per KL, HSD-SLAB-1 Rs 222 per KL, HSD-SLAB-2 Rs 168 per KL, SKO Rs 126 per KL, LDO Rs 69 per KL, FO Rs 112 per KL, and LPG Rs 10.50 per cylinder.

The commission for higher capacity cylinders would be proportionately higher in relation to 14.2 kg cylinder commission.

According to an official press release, OCC was having an outstanding of Rs 18,200 crore payable to the oil companies and increase in the commission would be reflected in the prices of these products. As the government has also decided to change diesel prices on import parity basis, the increase in respect of HSD commission has been adjusted while fixing the prices of HSD. However, to minimise the impact of increase in dealers commission on consumers, the government has decided not to pass on to the consumers the current increase in commission in respect of LPG and motor spirit.

The dealers will also be required to pay a licence fee to the oil companies towards the investments made by the later at the retail outlets.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.