Oil Companies on Thursday increased by a steep retail selling price of petrol by Rs 58 paisa a litre and for diesel by price cut by 31 paisa second such hike in a fortnight.
The prices will vary from state to state and will be effective from midnight.
As of today petrol price in Delhi stood at Rs 63.47 a litre while diesel costs Rs 52.94 a litre. Meanwhile, international Oil prices were trading at $46.18 per barrel.
Earlier, on August 31, public sector oil marketing companies announced an increase in retail selling price of petrol by Rs. 3.38 a litre and for diesel by Rs. 2.67 a litre, reversing a two-month declining trend. Back then, defending the quantum of increase, the company said that retail selling prices of petrol and diesel have been reduced on four occasions in the last two months on the back of decreasing international oil prices.
State-owned fuel retailers IOC, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) revise rates of the fuel on 1st and 15th 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.
On September 1, the price of subsidised cooking gas (LPG) was hiked by about Rs 2 per cylinder, third increase since July, while the jet fuel price was cut by 3.8 per cent. A subsidised 14.2-kg cylinder is now cost Rs 425.06 in Delhi as against Rs 423.09 previously, according to state-owned oil firms.
This was the third straight increase in subsidised cooking gas since July when the government decided to go in for a small hike in rates every month to cut down subsidies.