New Delhi, Jan 3 (IANS)

 Petrol and diesel prices will go up by 75 paise and 50 paise a litre, excluding taxes, from midnight Friday, state-run oil marketing company Indian Oil Corporation (IOC) said.

"Indian Oil Corporation has decided to effect increase in the retail selling price of petrol by Rs. 0.75 per litre excluding state levies (and) increase in retail selling price of diesel by Rs.0.50 per litre excluding state levies," India's largest oil marketing company (OMC) said in a statement.

According to IOC said that it had to hike prices due to volatility in the rupee value and hardening of international motor spirit (MS) prices in the international market. 

"Since the last price change, international prices of MS have increased and the rupee-dollar exchange rate has depreciated. There is a continued volatility in the international oil prices because of geopolitical and economic developments around the globe." 

The three state-run OMCs, which review prices of diesel and petrol every fortnight, had last increased petrol and diesel price late last month.

On Dec 20 2012, petrol prices were hiked by 41 paise per litre, and diesel prices were increased by a little under 10 paise per litre, both excluding sales tax or VAT, after the government raised the commission paid to fuel dealers.

While the petrol price is market-linked and revised periodically depending on the international crude oil price, the diesel price is subsidised and the OMCs are only allowed to hike it by a "small amount" every month. 

Currently, the government fully subsidises sensitive products like LPG cylinders and kerosene. While it partially subsidises diesel price to protect the domestic economy from international crude oil cost fluctuation, as the country imports the majority of its oil needs.