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Sending shockwaves across the country, public sector oil companies raised petrol price Wednesday by `6.28 per litre, excluding local taxes.

In Delhi, the price was hiked by Rs.7.54 to Rs.73.18 per litre. In Chennai, it went up by Rs.7.98 and petrol will now cost Rs.77.53.

Since the rate of sales tax or VAT varies from 15 to 33 per cent from state to state, Rs.0.94 to Rs.2.07 a litre will be added to the hike.

Indian Oil Corporation said to compensate the loss it incurred in the current financial year an additional increase of around Rs.1.50 litre in petrol price for rest of the year would be required.

There was speculation the government may also hike diesel and LPG prices soon.

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Due to the difference in petrol and diesel prices, there has been a huge increase in sale of diesel cars in the country. The government wants to narrow down the disparity in sale of diesel and petrol cars.

Currently, oil companies are losing around `13 on sale of diesel and around `480 on every domestic LPG cylinder.

The hike came under allround attack from political parties. Chief minister J.Jayalalithaa demanded its immediate rollback, warning otherwise, people’s agony would spell the doom for the “anti-people” UPA government. “The hike of `7.50 will affect the poor and the middle-class. This is a gift to the people by the UPA coalition government on its completion of three years in office,” she said.

CM said the hike could have been avoided by reducing profit of government as well as private oil companies, reducing tax on petrol and checking rupee fall.

Holding UPA government’s “wrong” economic policies responsible, she said the hike had only added “fuel to the fire”.

DMK, which is part of the government, also sought its rollback, so did Samajwadi Party chief Mulayam Singh, who was the centre of attention at the UPA anniversary celebrations Tuesday night.

CPI threatened a nationwide agitation.

Trinamul Congress chief and West Bengal CM Mamata Banerjee said, “The increase is unjust and unilateral.”