New Delhi: The real New Year ‘Gift’ that will hit your pockets: Hike in fuel prices!  Petrol price was  hikedon January 1,  by Rs 1.29 a litre — the third increase in a month, and diesel rate was raised by 97 paise a litre — the second hike in a fortnight.

The increase in rates announced by oil firms is excluding state taxes and the actual hike will be higher. For example, the actual hike after considering VAT would be Rs 1.66 a litre in Delhi for petrol and Rs 1.14 for diesel.

This is the third increase in petrol price in one month and the second in case of diesel in one fortnight.

Petrol price was on December 17 hiked by Rs 2.21 a litre and diesel by Rs 1.79 per litre, excluding local levies. The actual hike after considering VAT came to Rs 2.84 per litre in Delhi for petrol and Rs 2.11 for diesel. After today’s hike, petrol in Delhi will now cost Rs 70.60 a litre from tomorrow as compared to Rs 68.94 currently.

Similarly, a litre of diesel will from tomorrow cost Rs 57.82, up from Rs 56.68.

Why the hike? Well you can put a finger on the Prime Minister’s ‘DeMo’ : the so-called demonetarisation or cash ban, that has resulted in the rupee plummeting over the past 50 days. It’s the Rupee-Dollar exchange rate!

Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise rates on 1st and 16th of every month based on average international price in the previous fortnight.

“The current level of international product prices of petrol and diesel and Rupee-US Dollar exchange rate warrant increase in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision,” IOC said in a statement.

It said the movement of prices in the international oil market and foreign exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes.

  Bharat Petroleum Corp (BPCL), Hindustan Petroleum Corp (HPCL), Indian Oil Corp (IOC), petrol