NEW DELHI, June 3: India raised prices of diesel and petrol on Monday to match the rally in global crude prices in the last three months, Oil Minister Ram Naik said.

The consumer price of petrol has been raised by 2.50 rupees per litre while diesel prices have been increased by 1.50 rupees per litre.

Naik said the excise duty on petrol had been cut to 30 per cent from 32 per cent while duty on diesel had been reduced to 14 per cent from 16 per cent. The duty would be reviewed every three months, he added.

The government also agreed to pay 20 billion rupees to oil retailing firms who were not allowed to raise prices since March 1 despite soaring costs of imported crude.

Petrol prices in Delhi have been raised by 9.5 per cent to about 29 rupees a litre, while diesel prices are up 8.4 per cent at 18 rupees a litre.

Naik said retail prices were last fixed when global prices were at $19-20 a barrel, but the average oil price in the last two months rose to about $25 a barrel.

“We have decided to compensate the oil marketing companies for the financial burden, estimated to be 20 billion rupees, for non-revision in consumer prices in the past two months,” he said.—Reuters