Oil marketing companies on Monday hiked petrol prices by 83 paise per litre and diesel by Rs 1.26 per litre, a move that will pinch your budget.
This is the second consecutive hike in prices, with rates being hiked by as much as Rs 2.94 per litre in April end.
The hike comes at a time when all most global analysts are of the view that crude prices have bottomed out and the price of oil is likely to go up by 2017.
Markets worldwide are eyeing meetings next month of the Organization of the Petroleum Exporting Countries and US Federal Reserve policymakers whose decisions will impact on oil prices.
Meanwhile, the two consecutive price hikes are likely to add to inflationary pressures in the economy. Consumer price inflation has already accelerated to a stronger-than-expected 5.39 percent in April from 4.83 percent the previous month.
State-owned fuel retailers IOC, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) revise rates of the fuel on 1st and 16th of every month based on the average oil price and the foreign exchange rate in the preceding fortnight.
In 2014 diesel prices were deregulated, giving oil marketing companies the liberty to hike or cut prices according to global price movement.
(With inputs from Agencies)
(This story was originally published on May 16, 2016)