Petrol price was on Friday hiked by 75 paise and diesel by 50 paise a litre as rise in global oil rates and fall in rupee value 
increased the cost of production.
The revised prices, which will take effect from Saturday, are excluding local sales tax or VAT and actual increase will be higher and vary from city to city.
Petrol price, which was last hiked by 41 paise excluding VAT on December 21 as government raised commissioned paid to petrol pump dealers, will cost Rs. 72.43 a litre in Delhi from midnight tonight, up 91 paise from Rs. 71.52.
The price of diesel in Delhi will be hiked by 56 paise, including tax, to Rs. 54.34 per litre, while it will cost Rs. 61.42 a litre in Mumbai, as against Rs. 60.80 until now.
Diesel price increase is in line with the January, 2013 decision of the government to raise rates by up to 50 paise per month till such time that the entire losses on the fuel are wiped out, and prices made market determined.
Announcing the price hike, Indian Oil Corp, the country’s largest fuel retailer, said that even after the 12th price hike since last January the oil companies are incurring Rs. 9.24 per litre loss on sale of the fuel.
Officials said the price revision was due on January 1 but the oil companies did not change rates as they were wary of the decision being dubbed as ‘New Year Gift’ to consumers.
The diesel price was last hiked by 10 paise on December 21 when the commission paid to petrol pump dealers was increased by the government.