Petrol price was on Friday hiked by Rs 3.13 a litre and diesel by Rs 2.71 per litre, the second straight steep increase in rates this month.
The hike, which comes on the back of Rs 3.96 per litre increase in petrol and Rs 2.37 a litre raise in diesel from May 1, will be effective from midnight.
Prices of petrol in Delhi will be Rs 66.29 a litre from Saturday as against the current Rs 63.16; while diesel will cost Rs 52.28 per litre as against Rs 49.57, Indian Oil Corp (IOC), the nation's largest oil company, said.
The two consecutive hikes have wiped away more than one-third of the gains that had accrued to consumers when global rates began to fall in August last year.
"Since last price change (effective May 1), there has been a steep increase in international prices of both petrol and diesel.
Rupee-US dollar exchange rate has also depreciated quite significantly during this period.
"Combined impact of both these factors warrant an upward revision in prices, the impact of which is being passed on to consumers with this price increase," IOC said in a statement.
State-owned fuel retailers IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.
Petrol prices had been cumulatively cut by Rs 17.11 a litre in 10 reductions between August and February and diesel by Rs 12.96 a litre in 6 cuts between October and February.
After two rates hikes (0.82 a litre in petrol and Rs 0.61 per litre in diesel on February 16, and Rs 3.18 per litre in petrol and Rs 3.09 a litre in diesel on March 1) rates were again cut on April 2 (49 paisa a litre in petrol and Rs 1.21 in diesel) and on April 16 (80 paise per litre on petrol and Rs 1.30 a litre on diesel).
"The movement of prices in international oil market and rupee-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes," IOC said.