Petrol prices were hiked by Rs 2.21 per litre while diesel prices were raised by Rs 1.79 per litre excluding local levies following a surge in crude oil price.
The revised rates will be effective from midnight.
This increase excludes local levies. The actual hike after considering VAT would be Rs 2.84 per litre in Delhi for petrol and Rs 2.11 for diesel.
After the hike, petrol in Delhi will cost Rs 68.94 per litre from midnight as against Rs 66.10 currently, said Indian Oil Corp, the nation's largest fuel retailer.
Similarly, a litre of diesel will cost Rs 56.68 as compared to Rs 54.57 now.
IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise rates on 1st and 16th of every month based on average international price in the previous fortnight. But an increase that was warranted because of a rise in international gasoline (petrol) price to 62.82 dollar per barrel from 57.43 dollar and that of diesel to dollar 60.97 from 56.79 doller was not announced on Thursday.
Industry sources said the deferment was because Parliament was in session and any hike would have added to the discomfort of the government, particularly when it is facing heat over hardships caused by currency demonetisation. The Winter Session of Parliament ended on Friday.
Rates were last revised on December 1 when petrol price was hiked by a marginal 13 paise a litre, but diesel rates were cut by 12 paise.
Prior to the December 1 price change, rates were hiked by Rs 1.46 a litre in the case of petrol and Rs 1.53 per litre for diesel, excluding local levies, on November 16.
"The current level of international product prices of petrol and diesel and Rupee-US Dollar exchange rate warrant increase in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision," IOC said in a statement.
It said the movement of prices in the international oil market and foreign exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes.
(With inputs from PTI)