Hindustan Petroleum Corp Ltd, Bharat Petroleum Corp Ltd and Indian Oil Corp, which dominate fuel retailing in India, said they will increase their petrol prices by 3.14 rupees per litre.
The overall inflationary impact of the price increase is expected to be modest, at between 4 and 15 basis points, economists said. Petrol accounts for just 1.09 percent of the wholesale price index , while diesel, which is much more widely used, has a weight of 4.67 percent.
Oil companies in India have been free since June 2010 to set their own prices for petrol, which is considered a rich person's fuel. Raising the petrol price is politically easier than lifting state-controlled diesel prices, which New Delhi did in June after months of delay.