IOC raises petrol price by 27 paise a litre

State-owned Indian Oil Corp (IOC) on Monday raised petrol price by Rs 0.27 a litre effective midnight tonight, while other public sector firms are likely to follow suit in the next couple of days.

As a result, petrol in Delhi would cost Rs 51.83 a litre from Rs 51.56 per litre previously, an IOC official said.

"The price hike has been necessitated because of rise in crude oil prices," the official said.

Crude oil rose in Asian trade on Monday, rebounding from last week's losses. New York's main contract, light, sweet crude for October delivery, gained 21 cents to $ 73.87 a barrel.

Hindustan Petroleum and Bharat Petroleum are likely to raise petrol prices between Rs 0.27-0.28 a litre on Monday or even Tuesday.

"The public sector oil firms have previously been accused for fixing prices as a cartel. So now, they are setting rates independently on different days," an industry official said.

This is the first time since the June decision of the government to free petrol price from its control, that the rates of petrol is being raised.

Petrol in Mumbai will cost Rs 56.25 as against Rs 55.97 per litre. In Kolkata, petrol will cost Rs 55.69 and in Chennai it will be priced at Rs 56.31 per litre.