Petrol price was on Friday hiked by Rs1.40 per litre, the second big increase in rates in as many weeks.
A rise in international oil prices and depreciation in rupee have necessitated a Rs1.40 per litre increase in price of petrol with effect from midnight tonight, said a statement by Indian Oil Corporation (IOC).
The hike is excluding local sales tax or VAT and the actual increase in rate for consumers will be higher after including the tax incidence.
The previous petrol price hike was Rs1.50 a litre excluding VAT on February 16.
The increase in price for consumers in Delhi will be Rs1.68 per litre and the new rate will be Rs70.74 a litre from Saturday as against Rs69.06 a litre currently.
"The price increase has been necessitated by two factors — the international gasoline (petrol) prices have increased from USD 128.57 per barrel to USD 131.00 a barrel since the last revision; and the rupee has depreciated from Rs53.43 to Rs54.15 per US Dollar during the period," the statement said.
Petrol in Mumbai will cost Rs77.66 a litre as against Rs75.89 per litre currently.
"The trends of international oil prices and Rupee-USD exchange rate shall be closely monitored and the same shall be reflected in future price changes," said IOC, the nation's largest oil retailer.
Apart from losses on sale of petrol, oil firms are suffering under-recovery (revenue loss) on sale of diesel of Rs11.26 per litre, kerosene of Rs33.43 a litre and LPG of Rs439 per cylinder. The loss on diesel has risen from Rs10.72 a litre on February 16, when its rates were increased by 45 paisa excluding VAT.
IOC said it will end the fiscal with a revenue loss of Rs86,500 crore on sale of diesel, LPG and kerosene. The industry, comprising of IOC and two other state firms, will be Rs163,500 crore during current year.