(Image source from: Petrol)

For those already reeling under zooming petrol and diesel prices in the country, here is some more bad news. Indian government has decided to hike prices of petrol by 75 paise and diesel by 50 paise per liter following rise in global oil rates and deprecation of rupee value.

The hikes, effective from today, are exclusive of local sales tax or VAT. So the actual increase will be vary from city to city.

Last time, petrol and diesel prices went up by 41 paise and 10 paise respectively, excluding VAT on December 21, as government increased the commission paid to petrol pump dealers.

Hike in diesel price is in line with the January 2013 government decision to hike rates by up to 50 paise per month until the “entire losses on the fuel are wiped out and prices made market determined.”

Announcing the hike in fuel prices, Indian Oil Corporation, the nation's largest fuel retailer, said that even after the 12th price hike since last January, the oil companies are losing Rs 9.24 per litre on sale of the fuel.

Officials reveal that a price revision was due on January 1, but the oil companies did not go ahead as they didn't wish this to be dubbed as 'New Year Gift' to consumers.

AW: Suchorita Dutta Choudhury