Following Wednesday hiked, petrol price in Delhi will cost Rs 68.64 a litre while it will cost 73.74 in Mumbai, Rs 72.64 in Chennai and Rs 73.10 in Kolkata including local taxes.
India Oil was the first to hike petrol prices while other companies are also expected to follow soon.
According to reports, Indian Oil, Hindustan Petroleum and Bharat Petroleum are losing Rs 333 crore per day on selling diesel, domestic LPG and kerosene below cost. They lose Rs 9.27 per litre on diesel, Rs 26.94 per litre on kerosene sold through the public distribution system (PDS) and Rs 260.50 per 14.2-kg LPG cylinder supplied to domestic households for cooking purposes.
Following this loss, the price of LPG and diesel are also expected to be hiked soon.
It is notable that this hike comes in times when the country is faced with high food inflation hitting the double digit of 12.21 percent for the week ended October 22, a situation described by the Finance Minister as “dangerously” high.
Indian Oil, Hindustan Petroleum and Bharat Petroleum had earlier hiked petrol prices by Rs 3.14 a litre on September 16 when the rupee was ruling at about 48 to a US dollar.
The government had in June last year deregulated, or freed, petrol from all price controls, but the retail rates have not moved in line with the cost as high inflation forced the oil companies to seek "advice" from the parent Oil Ministry before revising rates.
