Finance Minister Mr Pranab Mukherjee said the recent hike in petrol prices will have some impact on inflation, which is currently hovering close to the double-digit mark.

Mr Pranab Mukherjee told reporters that "Of course it will have some adverse impact on inflation. But the oil prices are going up and petrol is a decontrolled item.”

Oil companies recently raised petrol prices by INR 1.80 per litre, citing the impact of rupee depreciation on the cost of crude oil imports. Following the increase, petrol in Delhi will cost INR 68.64 a litre.

On why the government's allies were not kept in the loop about the price hike, Mr Mukherjee said that "Nobody in the government knows... because petrol prices are increased by the petroleum companies, not by the government. Diesel, kerosene and gas are controlled items."

UPA partner Trinamool Congress has expressed unhappiness over the petrol price hike.

(Sourced from PTI)