As per the practice of revising rates every fortnight, petrol price revision is due Friday and if oil ministry approves the increased prices will come into effect from June 1, sources privy to the development said.
While international oil prices have softened, the rupee has depreciated against the US currency to Rs 56.38/39 per dollar, about Rs 2 lower than the rate at the last revision in March.
This will be the first price-hike in three months' time. Petrol prices were last increased on March 1. Since then, petrol prices have been cut four times on falling global oil prices.
Petrol prices were cut by Rs 3 per litre on May 1, Rs 1.20 on April 16, Re 1 on April 1 and Rs 2.40 on March 16. It costs Rs 63.09 a litre in Delhi currently.
With the depreciation in rupee, the loss on diesel sales too has widened to about Rs 5 a litre form Rs 3.78 previously and there was a clear-cut case for implementing the monthly revision of 40-50 paisa per litre from June 16.
The government had in January allowed oil firms to raise diesel prices in small dozes of 40-50 paisa per litre every month till such time that the losses on the fuel sales are wiped out.
Diesel price have since then been hiked four times, the last being on May 11 when it was raised by Rs 1.02 a litre. Diesel in Delhi now costs Rs 49.69 a litre.