"There were hikes of about Rs 1.5 per litre in the earlier system when the revision took place on fortnightly basis", said Arvind Thakkar, president of Federation of Gujarat Petroleum Dealers Association, the apex body of all local associations of petrol pump operators in the state.
Opposition parties have called for a nation-wide "Bharat Bandh" to protest against the spiralling fuel prices.
"Diesel, petrol price rise is out of our hands because oil producing countries have limited production", the minister said, adding, "We're not saying we can't do anything". Both petrol and diesel prices have been at their all-time high in the country for around a week now, due to increase in crude oil prices and depreciation in the rupee against the dollar. In cities like Kolkata, Mumbai and Chennai, a per litre petrol is available at Rs 83.27, Rs 87.77 and Rs 83.54 respectively.
Chandrababu Naidu said that orders for bringing into effect the new rates of petrol and diesel would be issued on Monday and will be effectual from Tuesday morning.
According to oil companies, petrol at refinery gate costs around Rs 40.50 a litre and diesel Rs 43. Two, it insulates fuel prices from competitive politics.
As per the country's pricing mechanism, the domestic fuel prices are dependent upon the worldwide fuel prices on a 15-day average and the impact of the rupee-US dollar fluctuations. "Moreover tax structure is such that VAT on fuel rises with the rise in the price of fuel".
However, the central government is yet to announce any cut on the excise duty levied on petrol and diesel.
The VAT on petrol has been reduced from 30 to 26 per cent and from 22 to 18 per cent on diesel, Rajasthan Chief Minister Raje announced at a public gathering in Rawatsar in Hanumangarh district on Sunday.