Transport fuel prices were hiked, for the second time in a month, effective Friday midnight by Rs.3.13 per litre for petrol and by Rs.2.71 a litre for diesel, including state levies, state-owned oil marketing companies (OMCs) said on Friday. The rates were last increased on May 1 by Rs.3.96 per litre for petrol and by Rs.2.37 a litre for diesel.

"Indian Oil Corporation (IOC) has decided to effect the price changes midnight of 15th-16th May," IOC said in statement.
According to IOC, it had to hike prices due to volatility in the rupee value and hardening of international motor spirit (MS) and diesel prices in the international market.

"Since the last price change, there has been a steep increase in international prices of both petrol and diesel. Rupee-dollar exchange rate has also depreciated quite significantly during this period," the statement said.

The three state-run OMCs review prices of diesel and petrol every fortnight depending on global oil prices and currency movements.

Petrol price has been market-linked since June 2010, while diesel prices were fully deregulated from Oct 18 2014. Both the fuel prices are revised periodically depending on the international crude oil price.

Currently, the government fully subsidises sensitive products like LPG (liquefied petroleum gas) cylinders and kerosene.

Allowing for local taxes, the prices per litre of petrol will be Rs.66.29 in Delhi, Rs.73.76 in Kolkata, Rs.74.12 in Mumbai and Rs.69.45 in Chennai.

After adjusting the upward revision, diesel will cost be Rs.52.28 in Delhi, Rs.56.85 in Kolkata, Rs.59.86 in Mumbai and Rs.55.74 in Chennai.