Petrol and diesel prices are linked to market rates in India.

The price of petrol was hiked by Rs 1.39 per litre and diesel by Rs 1.04 a litre last night in sync with firming international rates.The hike comes the on back of a Rs 4.85 per litre reduction in rates of petrol and Rs 3.41 a litre in diesel effected from April 1.Indian Oil Corp (IOC), the nation's largest fuel retailer, said price of petrol is being increased by Rs 1.39 per litre, excluding state levies, and that of diesel by Rs 1.04 (excluding state levies) with effect from midnight.Actual increase in price will be more after taking into account local VAT. Petrol in Delhi currently costs Rs 66.29 a litre while a litre of diesel is priced at Rs 55.61."The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant increase in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision," IOC said in a statement.

The movement of prices in the international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes, it said.IOC also said it intends to shortly start daily changes in price of petrol and diesel on pilot basis, in Udaipur, Jamshedpur, Pondicherry, Chandigarh and Vizag.