New Delhi, March 1
Petrol prices have been hiked by Rs 1.40 per litre excluding local sales tax with effect from midnight, the second big increase in rates in a fortnight. The previous petrol price hike was Rs 1.50 a litre excluding VAT on February 16. This amounts to an increase of almost Rs 3 in two weeks.

A rise in global oil prices and depreciation in rupee have necessitated a Rs 1.40 per litre increase in price of petrol with effect from Friday midnight, the Indian Oil Corporation said.

The hike is excluding local sales tax or VAT and the actual increase in rate for consumers will be higher after including the tax incidence.

“The price increase has been necessitated by two factors: the international gasoline (petrol) prices have increased from $128.57 per barrel to $131.00 since the last revision; and the rupee has depreciated from Rs 53.43 to Rs 54.15 per dollar during the period,” the statement said. With the rupee soft today and some analysts predicting further weakening, oil prices going up cannot be ruled out.