Petrol turns dearer by Rs 3.07 a litre, diesel up Rs 1.90

While the hike in petrol price turns the clock back on the declining trend since January, this is the third straight fortnightly increase in diesel rates.

Petrol price was hiked on Wednesday by Rs 3.07 a litre, reversing its 3-month declining trend, while diesel rates went up by Rs 1.90 per litre.

Petrol in Delhi will cost Rs 59.68 per litre from mid-night tonight as against Rs 56.61 currently, said Indian Oil Corporation, the nation's biggest fuel retailer.

Similarly, a litre of diesel will cost Rs 48.33 compared with Rs 46.43 a litre at present.

While the hike in petrol price turns the clock back on the declining trend since January, this is the third straight fortnightly increase in diesel rates.

Petrol price was last cut by Rs 3.02 from March 1 and today's hike has wiped off all of that. Diesel price on that day was hiked by Rs 1.47.

The three hikes in diesel rates since February 16 total Rs 3.65 per litre.

In fact, consumers are still to get all the benefits from the sharp drop in international oil prices to a decade low as the government on five occasions since November has raised excise duty on the two auto fuels.

The five levy hikes add up to Rs 4.02 per litre on petrol and Rs 6.97 on diesel, handing the government a neat Rs 17,000 crore as additional revenue.

"The current level of international product prices of petrol and diesel and rupee-US dollar exchange rate warrant increase in price of petrol and diesel, the impact of which is being passed on to consumers with this price revision," IOC said in a statement.

State-owned fuel retailers IOC, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise rates of the fuel on 1st and 16th of every month based on average oil price and foreign exchange rate in the preceding fortnight.

The revision was due on Tuesday, but the retailers chose to defer it by a day.

"The movement of prices in the international oil market and rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes," IOC added.