State-run fuel retailers on Friday raised petrol price by Rs 3.13 a litre and diesel by Rs 2.71, including state levies in Delhi, on the back of rising international crude rates and falling value of the rupee against the Greenback.
The increase in other states will vary depending on local taxes. After the latest revision, petrol costs Rs 66.29 a litre in Delhi and diesel Rs 52.28 from Saturday.
This is the fourth increase in fuel prices this year and second in a row in the last 15 days. The rates were last hiked on May 1. On March 1, petrol price rose by Rs 3.18 and diesel by Rs 3.09. Before that, petrol had become costlier by 82 paise and diesel by 61 paise on February 16.
Petrol prices had cumulatively been reduced by Rs 17.11 a litre in 10 reductions between last August and this February. Diesel prices were brought down by Rs 12.96 in six cuts between last October and February.
The latest round of increase indicates the government’s resolve to stick to deregulation in a bid to reduce subsidy and subsequently, keep the fiscal deficit under control.
State fuel retailers revise petrol and diesel prices on 1st and 16th of every month on the basis of average imported cost and rupee-dollar exchange rate in the previous fortnight.