Petrol prices have gone up by Rs 2.96 a litre from midnight on Tuesday after state-owned Bharat Petroleum Corporation (BPCL) hiked prices.
After the hike, petrol will cost Rs 55.87 a litre in Delhi. State run oil marketing companies have been considering an increase of prices as international crude oil prices inched closer to $90 a barrel.
An empowered group of ministers headed by finance minister Pranab Mukherjee will decide on the hike in prices of diesel when it meets on December 22. Other state-owned oil companies Indian Oil Corporation and Hindustan Petroleum Corporation Limited will increase prices of petrol by the same amount on Wednesday.
In June, the government had deregulated petrol prices allowing oil companies to fix market-determined prices following which companies do not increase prices on the same day to avoid charges of cartelisation.