The new prices will be effective from tomorrow, October 4.
It asserted that the decision has been taken by the government "in order to protect the interest of the common man".
The ministry further stated that the Government will experience revenue loss of about Rs 26,000 crore in full year, while Rs 13,000 crore in the remaining part of the current financial year.
"Earlier due to the increase in the international prices of Petrol and Diesel, during the last few weeks, the Retail Selling Prices (RSP) of Petrol and Diesel at Delhi have risen to Rs. 70.83/litre and Rs. 59.07/litre respectively, as on 2nd October 2017. This rise in the prices of Petrol and Diesel is also reflected in WPI inflation, which has increased to 3.24% for the month of August 2017, as compared to 1.88% for the month of July 2017.This also prompted the Government to act swiftly in this regard," said the Finance Ministry.(ANI)