The petrol price has been increased by Rs 1.55 a litre, excluding local taxes, effective midnight.
The exact increase would vary from one State to another depending on local levies in addition to the revised price.
According to Indian Oil Corporation Ltd, the depreciating Rupee against the Dollar and increase in international prices has resulted in the upward revision of the auto fuel.
"The combined impact of deteriorating exchange rate and increasing international oil prices has resulted in the need to increase petrol prices by Rs 1.55 a litre (excluding value added tax)," the public sector firm said in a statement on Sunday.
"Since last price change, the downward spiral of Rupee against the US Dollar has continued to reach a low of Rs 60.03 as against Rs 58.94 during the previous fortnight," it added.
In addition, international petrol prices have also shown an uptrend and increased from $115.29 for every barrel to $117.19 a barrel .
IOC also mentioned that these factors have also resulted in further increase in the gap between selling price and actual market cost (commonly known as under-recovery) for diesel, domestic subsidised cooking gas and kerosene.
At current level, IOC is selling every litre of diesel at a loss of Rs 9.45; while kerosene is sold Rs 30.53 a litre less than market cost. Every subsidised domestic cooking gas is sold at a discount of Rs 368.50.
In 2013-14, IOC is expected to incur under-recovery of Rs 67,000 crore on sale of three sensitive products (diesel, domestic cooking gas and kerosene). The industry, including BPCL and HPCL, is expected to loss Rs 1,26,000 crore for selling these products below market cost.
"The movement of prices in international oil markets and Rupee-Dollar exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes," IOC said.