Petrol prices have been increased by Rs 7.50 a litre from midnight. The increase was on the cards with the rupee continuing its free fall against the US dollar. The rupee fell to a record life low of 56 per dollar on Wednesday.
Oil companies had already told the government that wanted to hike petrol price by at least Rs 4 per litre.
Earlier on Tuesday, Petroleum Minister S Jaipal Reddy had said that there was an immediate need to raise fuel prices, but refused to say when the hike would actually take place.
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 per cent and 7 per cent fall in value of rupee against the US dollar.
Price of diesel, kerosene and cooking gas were raised in June 2011.
State-owned oil firms, who had in the fiscal ending March 31, 2012 lost Rs 4,860 crore on petrol sales, are currently losing Rs 6.28 per litre on petrol.
Oil companies had already told the government that wanted to hike petrol price by at least Rs 4 per litre.
Earlier on Tuesday, Petroleum Minister S Jaipal Reddy had said that there was an immediate need to raise fuel prices, but refused to say when the hike would actually take place.
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 per cent and 7 per cent fall in value of rupee against the US dollar.
Price of diesel, kerosene and cooking gas were raised in June 2011.
State-owned oil firms, who had in the fiscal ending March 31, 2012 lost Rs 4,860 crore on petrol sales, are currently losing Rs 6.28 per litre on petrol.
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