UPA's festival gift: Rs 2.50 per litre hike in petrol prices from mid-night

New Delhi, January 15, 2011 (PTI): State-owned oil companies on Saturday raised petrol prices by Rs. 2.50-Rs. 2.54 per litre, the second hike in a month, on back of rising crude oil prices.

Indian Oil Corp, the nation's largest fuel retailer, will raise petrol prices by Rs. 2.50 per litre with effect from midnight tonight, while Hindustan Petroleum Corp Ltd (HPCL) would hike rates by Rs. 2.54 a litre, an industry official said. Bharat Petroleum Corp, the third state fuel retailer, would raise price by Rs. 2.53 per litre with effect from midnight tonight.

The three firms from on December 15-16 raised petrol prices by Rs. 2.94-2.96 per litre, the biggest hike in six months.

Petrol at IOC outlets in Delhi now costs Rs. 55.87 per litre and from Sunday, it will be priced at Rs. 58.37 a litre. The fuel at HPCL and BPCL pumps would be sold at Rs. 58.39 per litre from Sunday.

Petrol at HPCL pumps at present costs Rs. 55.85 per litre while it is priced at Rs. 55.86 a litre at BPCL fuel bunks.

The official said the increase follows international crude oil prices climbing to $92 per barrel.

The state-run retailers are deliberately adopting marginally different rates to avoid being accused of acting as a cartel in the free market.

The government had freed petrol prices in June this year, but the state firms, which control 98 per cent of the retail market, continue to informally consult the oil ministry before revising prices.