Petrol prices have been hiked by 41 paise a litre following the government decision to raise the commission paid to petrol pump dealers and the firming of global oil rates. Diesel prices were also increased by 10 paise per litre. The hike, that exclude local sales tax or VAT, came into effect midnight on Friday night.

Petrol in Delhi will now cost around 71 rupees 50 paise per litre. Diesel rates have gone up marginally to about 53 rupees 80 paise a litre in the national capital.

Petroleum Minister Veerappa Moily has said that diesel prices will be completely deregulated in the next two months. Addressing a function in Mumbai on Friday, Moily said the delay in achieving complete deregulation of diesel price is because of the sharp currency depreciation during the year.