With the state-owned oil companies all set to hike petrol prices by around Rs 3 per litre, the resident of Maharashtra's Mumbai city held the government responsible for the hike.

Petrol prices have been hiked by Rs. 3.14 a litre, which will be effective from midnight today.

Shyam Jai Singh, a Mumbai resident, criticizing the government said the poor man will have to bear the brunt of the rising prices.

"The government talks about inflation, but they are themselves increasing inflation. This will have a cascading effect on oil prices and the poor man will suffer. The ministers who have 12 crores of assets, they will not suffer. They will just sit in the air-conditioned cabins and go on increasing. All the ministers are so rich that this does not affect them at all and then they declare 12 crores or 1.8 lakh, it is really surprising," said Singh.

"Increase takes place at the slightest end of increase. But decrease I have never seen. When the prices fall internationally, they don't decrease the price. They should do that also when the price falls. Increase is taken as an excuse to just increase. It is just to 'loot' the public. The government is only responsible for all this," he added.

Meanwhile, Chandrabhushan Dubey, another local here, said the rise in petrol prices will only add to the problems of the common man.

"Government is trying to trouble common man and I think in coming time people will not use their vehicles. I just want to tell the government the please open you eyes otherwise Indian will also suffer like Egypt," he said.

Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindsutan Petroleum Corp (HPCL) now lose Rs 2.61 per litre due to high international crude oil prices and with rupee touching two-year low against the US dollar, the losses have increased the cost of importing crude oil.

Petrol price were last hiked by Rs 5 per litre on May 15. It costs Rs 63.70 per litre in Delhi.

Petrol price was freed from the government control in June last year, but the retail rates have not moved in line with cost as high inflation rate forced the oil companies to seek 'advice' from parent oil ministry before revising rates.

IOC, BPCL and HPCL have reportedly lost Rs 2,450 crore this fiscal on selling petrol below the cost.

Besides petrol, the three firms are losing Rs 263 crore per day on selling diesel, domestic LPG and kerosene below cost. Diesel is being sold at a subsidy of Rs 6.05 a litre, kerosene at Rs 23.25 per litre while domestic LPG rates are under-priced by Rs 267 per 14.2-kg cylinder.

Rupee fell to 48 per dollar on Wednesday for the first time since September 2009.