New Delhi: India raised prices of petrol and diesel by nearly a rupee a litre on Tuesday, fuel retailers in Delhi said, as the government moves to recover losses incurred from high global crude prices.
After the hike of roughly 0.9 rupees ($0.0093), petrol will cost 98.64 rupees a litre in Delhi while diesel will be at 91.58 rupees a litre, dealers said.
Prices vary across the country because of regional taxes.
The world's third-largest importer and consumer of oil is one of the last major economies to raise retail fuel prices after the U.S.-Israeli war on Iran triggered the effective closure of the Strait of Hormuz.
Global oil prices spiked to more than $120 a barrel, before pulling back slightly.
State-run Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum, which together control more than 90% of a network of 103,000 fuel stations, tend to set prices in tandem.
Tuesday's increase followed India's first rise in four years last Friday when it raised petrol and diesel prices by 3 rupees a litre.
Analysts and opposition parties said that the government, headed by Prime Minister Narendra Modi, postponed increasing prices because of key state elections.
Modi's Bharatiya Janata Party went on to win two of the four key states, expanding its influence.
Sujata Sharma, a joint secretary in the federal oil ministry, on Monday said state fuel retailers are incurring a daily loss of 7.5 billion rupees on fuel sales.
The government is not planning any financial support for state retailers right now, she added.
Modi has urged people to limit their travel to conserve fuel and curb buying gold.