Oil companies on Saturday hiked the price of petrol by Rs 2.35 per litre, without taxes on firming international oil prices and the free-falling rupee. The price of diesel was also raised by 50 paise per litre.

The new prices will take effect from midnight.

This is a sixth hike in petrol prices in two months, whereas diesel prices have been hiked eight times since January 17.

After the revision, petrol price in Delhi will go up by Rs 2.83 to Rs 74.10 per litre while it will cost Rs 81.57 per litre in Mumbai as against Rs 78.61 currently.

Since June, petrol price has gone up by a massive Rs 9.17 per litre excluding VAT. In Delhi, the price of petrol including state tax has gone up by Rs 11.1 per litre since June 1.

Diesel price in Delhi has been hiked by 57 paise to Rs 51.97 per litre while it would cost Rs 58.86 in Mumbai from Sunday as compared to Rs 58.23 currently.

After the revision, petrol prices in four major cities stand as follows: Delhi- 74.10 per litre; Kolkata- Rs 81.57; Mumbai- Rs 81.57; Chennai- Rs 77.48.

Diesel prices will be as follows: Delhi- 51.97 per litre; Kolkata- Rs 56.33; Mumbai- Rs 58.86; Chennai- Rs 55.37.

Oil firms review the price of petrol every two weeks. While the price of petrol has been deregulated since June 2010 and the price is market determined, the government still controls the price of diesel and allows only minor revisions.

This is an eighth hike in the price of diesel since January 17. Most of the losses on diesel sales should have been wiped out by now to make the fuel market priced, but the rupee fall - around 25 per cent since April - has worsened the situation and oil firms are losing Rs 12.12 per litre despite prices being raised by a cumulative Rs 4.75 this year.

Next month after the Parliament session ends, diesel prices may see a one-time hike of Rs 3-5 per litre, kerosene of Rs 2 and LPG of Rs 50 per cylinder as Oil Minister M Veerappa Moily urged Prime Minister Manmohan Singh to take steps to tackle a record Rs 180,000 crore of losses arising from dipping rupee and surging oil rates.

(Read: 'Loss on subsidised fuel sale could touch Rs 1.8 lakh crore')

A 25 per cent drop in rupee value has resulted in losses on diesel sales widening to Rs 12.12 per litre despite prices being raised by 50 paise a litre every month since January.

Alongside, oil firms also raised rates of non-subsidised domestic cooking gas (LPG) that households buy after exhausting their quota of 9 subsidised cylinders.

Price in Delhi was hiked by Rs 57.50 per 14.2-kg cylinder to Rs 932.50.

Oil firms had on June 1 raised petrol prices by 75 paise, without taxes, and followed it with a Rs 2 per litre increase on June 16, a Rs 1.82 increase on June 29, a Rs 1.55 hike on July 15 and a 70 paise increase on July 31.

Announcing the price increase, Indian Oil Corp (IOC) said the deteriorating exchange rate has led to widening of losses on diesel from Rs 10.22 in the first fortnight of August to Rs 12.12 per litre. The same has also led to widening of under-recoveries on kerosene to Rs 36.83 per litre from Rs 33.54 at the beginning of the company and on LPG to Rs 470 per cylinder from Rs 411.99.

The rupee, which plays an important role in the price of fuel as oil companies buy crude in dollars, hit an all-time low of 68.85 on August 28 and has been the worst performing Asian currency lately, falling over 15 per cent in the last three months.

The rupee closed at 66.70 per dollar on Friday triggering strong buying in stock markets. It ended higher for a second straight day.

(Read: Rupee recovers to below 66/dollar)