Petrol price was increased on Saturday by 51 paise per litre and diesel by 61 paise a litre in Delhi, taking the cumulative increase in rates to Rs 5.88 and Rs 6.50 respectively in two weeks in the national capital.
Petrol will now cost Rs 78.88 for a litre and diesel Rs 77.67 per litre from Saturday after they were raised for the 14th day in a row.
Oil marketing companies have been adjusting retail rates in line with costs after an 82-day break from daily rate revision amidst the coronavirus pandemic. These firms restarted revising prices on June 7.
Before that, fuel prices were changed on March 16 but some state governments raised value-added tax (VAT) or cess to shore up their revenues, which went down during the coronavirus-induced lockdown.
The Centre levies specific excise duty on the two fuels. On March 14, it mopped up additional Rs 3 per litre from petrol and diesel each to fund its Covid-19 relief measures raising total central levies on petrol are to Rs 22.98 per litre on petrol and Rs 18.83 per litre.
Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) have adjusted fuel against the fall in the retail rates that was warranted because of a decline in international oil prices instead of passing on the excise duty hikes to customers.
International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them.
(With agency inputs)