Petrol and diesel prices were hiked by 80 paise a litre each on Friday, the third increase in four days. With three increases beginning March 22, petrol and diesel prices have gone up by Rs 2.40 a litre.
Petrol in Delhi will now cost Rs 97.81 per litre as against Rs 97.01 previously. Diesel rates have gone up from Rs 88.27 per litre to Rs 89.07.
A record 137-day hiatus in rate revision ended on March 22 with an 80 paise per litre increase in rates and similar proportion hikes have followed in subsequent days.
Prices had been on a freeze since November 4 ahead of the assembly elections in states like Uttar Pradesh and Punjab -- a period during which the cost of raw material (crude oil) soared by USD 30 per barrel.
The rate revision was expected soon after assembly elections ended on March 10 but it was put off. Oil companies are now recouping the losses.
Earlier on Thursday, Petroleum Minister Hardeep Singh Puri defended the hike in fuel prices in the country, saying it is due to the increase in prices in the international market. He, however, assured that efforts are being made to make fuel available to people at affordable prices.
According to Moody's Investors Services, fuel retailers IOC, BPCL and HPCL together lost around USD 2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold for 137 days.
Oil companies "will need to raise diesel prices by Rs 13.1-24.9 per litre and Rs 10.6-22.3 a litre on gasoline (petrol) at an underlying crude price of USD 100-120 per barrel," according to Kotak Institutional Equities.
CRISIL Research said a Rs 9-12 per litre increase in retail price will be required for a full pass-through of an average USD 100 per barrel crude oil and Rs 15-20 a litre hike if the average crude oil price rises to USD 110-120.
India is 85 per cent dependent on imports for meeting its oil needs and so retail rates adjust accordingly to the global movement.