Blame it on the hike in dealers' commission that the government has agreed to pay as the state-owned oil firms restrained themselves from revising petrol prices for the past 7, despite the value of rupee against dollar.
These firms used the government decision to hike the commission of the dealers by 21 paise to effect another 20 paise increase.
In the national capital, the petrol price is now Rs 71.50, increased from Rs 71.02 per litre. Similarly, Diesel prices have gone up marginally from Rs 53.67 a litre to Rs 53.80.
Interestingly, the petrol prices are revised on the 1st and the 16th of every month, depending on the global trend in the previous fortnight, but this time they were last revised on Nov 1.
Indian Oil Corp, the nation's largest fuel retailer said, "commission paid to petrol pump operators is being raised by 10 paisa on diesel (from Rs 1,089 per kilolitre or 1.089 per litre to Rs 1,186 per kl) and 21 paisa on petrol to Rs 1.95 a litre. In addition to above, for petrol, due to strengthening of prices in international markets and slight weakening of rupee, it has been decided to increase retail selling price by Rs 0.20 per litre (excluding state levies)."
Diesel prices were last hiked on December 1 last year, following the trend of a hike by 57 paise every month.