Steep hike: petrol price increased by Rs 3.38 per liter, diesel by Rs 2.67

New Delhi: In a steep hike that will worry the public, oil companies hiked petrol price by Rs 3.38 per liter and diesel by 2.67 Wednesday, reversing a two-month declining trend..

Petrol will cost Rs 63.47 a liter in Delhi from Wednesday midnight, up from Rs 60.09 a liter, said Indian Oil Corp, the nation's largest fuel retailer.

Similarly, a liter of diesel will cost Rs 52.94 a liter as against Rs 50.27.

The hike in fuel price, necessitated by a 13 percent rise in international oil rates in the last fortnight, comes on the back of four reductions.

Rates were last cut by Rs 1 per liter in case of petrol and Rs 2 in diesel on August 16. The four reductions in last two months had led to the price of petrol in Delhi coming down by Rs 5.56 a liter and Rs 4.92 per liter in case of diesel.

"During the current fortnight, crude oil prices in the international market have witnessed a steep increase by 13 percent (over USD 5 per barrel) compared to previous fortnight, with a corresponding increase in the international prices of petroleum products.

"The current level of international prices warrant an increase in prices of petrol and diesel, the impact of which is being passed on to the consumers," IOC said in a statement.

IOC and other state-owned fuel retailers, Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) revise petrol and Diesel Priceon 1st and 16th of every month based on international oil rate and foreign exchange ratio in the preceding fortnight.

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

State-owned fuel retailers IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (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.