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Bharat Petroleum Corporation Limited (BPCL) on Tuesday hiked petrol prices by about Rs. 2.96 a litre effective midnight tonight, and other state-owned oil companies Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL) will follow suit on Wednesday.

The Oil Ministry on Tuesday gave the three companies a go-ahead to raise petrol prices after international crude oil prices touched $90 per barrel.

BPCL, the second largest fuel retailer in the country, took the lead to raise petrol prices by Rs. 2.96 a litre to Rs. 55.87 per litre in Delhi, sources privy to the decision said.

IOC, the largest fuel retailer in the country, and the HPCL will do the same by an equal measure on Wednesday, sources said.

State-run oil companies are taking turns to increase prices so that they are not accused of acting as a cartel in revising the price of a commodity which has been freed from government control.

Sources added that the three are losing about Rs. 4.17 per litre on selling petrol below import cost.

Sources said a Rs. 2 per litre hike in diesel prices is on the agenda of an Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee when it meets on December 22. The oil firms are losing Rs. 5.40 per litre on selling diesel below import cost, sources said.

Even though the government had decontrolled petrol prices in June, State-run retailers continue to informally consult the oil ministry before revising the rates.

On November 9, they raised petrol prices by Rs. 0.32 per litre to Rs. 52.91 a litre in Delhi.

IOC, BPCL and HPCL have revised rates only four times since June 26 when petrol price was deregulated, while crude oil has jumped from $73-74 per barrel at that time to $90 a barrel now, sources said.

After today’s increase, petrol prices have gone up by Rs. 4.44 a litre since deregulation.

The basket of crude oil India buys was at $ 89.34 per barrel on Monday. It has averaged $ 88.47 per barrel in December as against about $ 79 a barrel at the time of last hike in petrol price on November 9.

If prices are not revised, IOC, BPCL and HPCL are likely to end the fiscal with close to Rs. 67,000 crore revenue loss on sale of diesel, domestic LPG and kerosene below cost.

The oil retailers lose Rs. 272.19 on the sale of every 14.2 kg LPG cylinder and Rs. 17.72 per litre of kerosene.