The move comes after the Parliament's budget session that ended Tuesday. Oil companies have been pressing the government to hike petrol price by at least Rs 4 per litre.
The price rise also comes as no surprise as rupee is continuing a slippery slope against the US dollar. The rupee slid to a low point of 55.95 per dollar on Wednesday.
Reports reveal that the state owned oil companies will raise the petrol price by Rs 6.28 per litre excluding VAT or local sales tax.
Meanwhile, the price rise have been slammed by political parties including the BJP and SP.
"Government should look into volatility in hiking prices," said the Samajwadi Party.