New Delhi, May 23 (PTI): Petrol rates were today raised by nearly Rs 8 per litre, the steepest ever increase and the first hike in six months.

Petrol price in Bhubaneswar has been raised by Rs 7.50 a litre to Rs 73.01 with effect from midnight tonight, state-owned oil companies said in separate but identical media announcements that were issued a day after the budget session got over.

This is the steepest hike in petrol price ever, the previous high being Rs 5 per litre.

The government had decontrolled petrol price in June 2010 but rates were last increased on November 4, last year. This despite oil price rising by 14.5 per cent and 3.2 per cent fall in value of rupee against the dollar.

Yesterday, oil minister S. Jaipal Reddy had stated that the depreciation in rupee had necessitated an immediate increase in fuel prices.

But rates of diesel, kerosene and cooking gas have not been revised as a high-power ministerial panel headed by finance minister Pranab Mukherjee and having representatives of key UPA allies like the Trinamul Congress and the DMK, hasn’t met for almost a year now.

Price of diesel, kerosene and cooking gas were last raised in June last year.

“If rupee depreciates by one against the US dollar, our oil companies lose Rs 8,000 crore (annually),” Reddy had said yesterday.

“Rupee yesterday dipped (to an all-time low of) Rs 55 (to a US dollar). Last year, it was Rs 46. This translates into a loss of Rs 72,000 crore (on account of rupee depreciation) this year.”

State-owned oil firms, which had in the fiscal ending March 31, 2012, lost Rs 4,860 crore on petrol sales, were currently losing Rs 6.28 per litre on petrol.

The losses on petrol are besides Rs 512 crore per day that oil firms lose on selling diesel, domestic LPG and kerosene. Diesel is currently sold at a loss of Rs 15.35 a litre, kerosene at Rs 32.98 per litre loss and oil firms lose Rs 479 on sale of every 14.2-kg domestic LPG cylinder.

The three firms had together lost Rs 138,541 crore in revenue in 2011-12. This year they are projected to lose a record Rs 193,880 crore.

“It will have immediate impact on prices, but will not have knock-on impact on prices. This in one time price adjustment. It will not have cascading effect,” Planning Commission member Abhijit Sen said. The petrol price hike, he said, “will not even result in 50 basis points (0.5 per cent) increase in headline inflation. This is happening because of rupee depreciation in the recent times.”