Indian Oil Corp (IOC), the nation's largest oil refiner, hiked diesel prices by nearly 1 per cent or 45 paisa per litre from Saturday.

In Delhi, price of the fuel jumped by 51 paisa per litre (after inclusion of local sales tax or VAT), from Rs 48.16 per litre to Rs 48.67 per litre.

It was the third increase in diesel prices since January, when the government allowed state-owned oil companies to increase diesel prices by up to 50 paisa per litre every month.

Oil companies were to increase diesel prices on March 16 along with a steep Rs 2.40 a litre decline in petrol prices, but the companies postponed the decision, apparently to help the government avoid criticism in Parliament. IOC announced the increase as the Parliament has adjourned for a month long break.

Even following the increase in the price of diesel, oil companies are losing Rs 8.19 a litre on the fuel.

On the sale of kerosene and LPG cylinder, the companies are suffering losses of Rs 33.43 per litre and Rs 439 per 14.2-kg cylinder, respectively.

The state-owned oil firms are expected to end the current financial year with revenue loss of around Rs 1, 63,000 crore due to under-recoveries on diesel, LPG and kerosene; with IOC alone accounting for nearly Rs 86,400 crore of the collective loss.