Petrol price was hiked by Rs 1.50 per litre and diesel by 45 paise a litre with effect from midnight Friday.
While petrol rates have been revised in step with the steep rise in international rates, oil firms used the newly accorded freedom to increase diesel price in small dozes to effect the second price adjustment in one month.
The increase announced is excluding local sales tax or VAT and the actual hike for consumers would be more after the incidence of duty is included.
Petrol price in Delhi will go up by almost Rs 1.80 per litre after taking into account 19 per cent VAT. Diesel rates would go up by 51 paise.
New rates for petrol in Delhi would be Rs 69.05 per litre, while a litre of diesel will cost Rs 48.16. Petrol price was last revised on January 18 when the price was cut by 30 paise to Rs 67.26 a litre in Delhi.
The reduction in rates on that day coincided with the government decision to give oil firms freedom to raise diesel prices in small monthly dozes to eliminate all of the losses on the fuel. Oil firms hiked diesel price on that day by 50 paise to Rs 47.65 a litre in Delhi.
Rates of petrol and diesel vary from state to state due to different tax structure.
The last revision in petrol and diesel prices was done Jan 18 this year, when the diesel price was increased by the same amount 45 paise per litre. However, petrol price was reduced by 25 paise per litre.
"Since the last price change, the international oil prices have constantly shown an uptrend. Crude oil price has increased from $109.08 per barrel to $113.24 per barrel," said Indian Oil Corporation, the country's largest oil marketing firm.
As a result of the latest hike in prices, under-recovery on diesel will come down to Rs.10.27 per litre from the current Rs.10.72 a litre. At the time of last price revision, under-recovery on diesel price was Rs.9.15 per litre. The under-recovery on diesel has increased in the last one month due to a sharp increase in the prices of crude oil in the international market.