New Delhi: Petrol price was hiked by a steep ₹ 2.35 per litre on Saturday and diesel by 50 paise ahead of a bigger increase in rates planned for next month that may also include LPG as falling rupee has made imports costlier.

The increase in price of petrol, the sixth hike in three months, and diesel, eighth since January, are excluding local sales tax or VAT and are effective midnight Saturday, oil firms said.

After the monsoon session of Parliament ends on 6 September, diesel prices may see a one-time hike of ₹ 3-5 per litre, kerosene of ₹ 2 and LPG of ₹ 50 per cylinder as oil minister M. Veerappa Moily urged Prime Minister Manmohan Singh to take steps to tackle a record ₹ 180,000 crore of losses arising from dipping rupee and surging oil rates.

Following Saturday’s hike, petrol price in Delhi will go up by ₹ 2.83 to ₹ 74.10 per litre while it will rise to ₹ 81.57 per litre in Mumbai from ₹ 78.61 currently.

In a parallel move, diesel price was hiked by 50 paise, excluding VAT, in line with the January decision of the government allowing oil companies freedom to raise prices in small doses every month to wipe out mounting losses. Diesel price in Delhi has been hiked by 57 paise to ₹ 51.97 per litre while it will now cost ₹ 58.86 in Mumbai, up from ₹ 58.23 currently.

Announcing the price increase, Indian Oil Corp. Ltd (IOC) said deteriorating exchange rate has led to widening of losses on sale of diesel from ₹ 10.22 per litre in the first fortnight of August to ₹ 12.12 per litre. The falling rupee has also led to widening of under-recoveries on kerosene to ₹ 36.83 per litre and on LPG to ₹ 470 per cylinder. PTI

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