In the steepest ever increase, petrol rates were raised by a massive R7.50 per litre on Wednesday, the first hike in rates in six months.

Petrol price in Delhi has been hiked by R7.54 per litre to R73.18 a litre with effect from midnight, state-owned oil companies said in separate but identical press announcements.

This is the steepest hike in petrol price ever, the previous high being R5 per litre. Oil firms had twice raised rates by R5 per litre ? on May 15, 2011, when prices in Delhi were hiked from R58.37 a litre to R63.37 per litre and on May 24, 2008 when rates were raised to R50.56 a litre.

The government had decontrolled petrol price in June 2010 but rates were last increased on November 4 last year. This despite oil price rising by 14.5 per cent and 3.2 per cent fall in value of rupee against the US dollar. Petrol in Mumbai will cost R78.57 per litre as against R70.66 a litre, at present. In Kolkata, the increase will be R7.85 per litre to R77.88 per litre and Chennai saw rates going up by R7.98 to R77.53 per litre.

Yesterday, oil minister S Jaipal Reddy had stated that the depreciation in rupee had necessitated an immediate increase in fuel prices.

But rates of diesel, kerosene and cooking gas have not been revised as a high-power ministerial panel headed by finance minister Pranab Mukherjee and having representatives of key UPA allies like TMC and DMK, hasn’t met for almost a year now.

Price of diesel, kerosene and cooking gas were last raised in June last year. ?If rupee depreciates by one against the US dollar, our oil companies lose Rs 8,000 crore (annually),? Reddy had said on Tuesday. ?Rupee yesterday dipped (to an all-time low of) Rs 55 (to a US dollar). Last year it was Rs 46. This translates into a loss of Rs 72,000 crore (on account of rupee depreciation) this year.?