Sept. 6 (Bloomberg) -- Indian Oil Corp., the nation's biggest refiner, and its counterparts are seeking a 15 percent increase in retail prices of diesel to cut losses.

Indian state-run refiners want a 4.68 rupees a liter ($0.11) increase in diesel prices and a 6.7 percent, or 2.90 rupees, a liter rise on gasoline, Oil Minister Murli Deora told parliament in New Delhi today. The companies are seeking a nearly three-fold increase in kerosene prices and 174.75 rupees on a 14.2-kilogram cylinder of liquefied petroleum gas, he said.

Indian Oil and its state-run counterparts have to sell gasoline, diesel and other fuels at government-capped prices to control inflation. The refiners haven't been allowed to raise prices this year even as crude oil costs surged to a record.

Indian Oil is losing 810 million rupees a day from selling fuels below cost, Chairman Sarthak Behuria said on Aug. 22.

Gasoline prices in Delhi are currently 43.52 rupees a liter, diesel 30.48 rupees a liter, kerosene 9.09 rupees a liter, and liquefied petroleum gas 294.75 rupees a cylinder, Indian Oil said on its Web site.

To contact the reporter on this story: Manash Goswami in New Delhi at mgoswami@bloomberg.net.

Last Updated: September 6, 2007 05:02 EDT