The government has increased the petrol price by Rs4.53 per litre and the diesel rate by Rs8.14 per litre.

The new rates of the petrol and diesel after the increase are Rs293.94 and Rs290.38 respectively. The new fuel prices will be effective from April 16.

Such an increase in fuel prices was expected against the backdrop of a higher international market despite a decline in the import premium and a slightly improved exchange rate.

Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers while diesel is used in heavy vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and thrashers.

Fuel prices are announced by the government every fortnight. The prices are dependant on a number of factors including international prices and the rupee’s exchange rate.

Oil prices sank by about 1% a barrel on Monday after Iran’s attack on Israel proved to be less damaging than anticipated, easing concerns of a quickly intensifying conflict that could displace crude barrels.

Brent futures for June delivery fell 91 cents to $89.54 a barrel, a 1% loss, by 1:17pm EDT (1717 GMT), Reuters reported. US crude futures for May delivery fell 87 cents to $84.79 per barrel, a 1% loss.

Oil benchmarks had risen on Friday in anticipation of Iran’s retaliatory assault, with prices soaring to their highest since October.