The price of petrol may go up by 50-70 paise by next week as the state-owned oil companies are gearing up to increase the price of the fuel.

They are taking this decision for the first time in the decontrolled environment after the government removed the administrative price mechanism from the oil sector and allowed the oil companies to fix their own prices.

After the decision which came on June 26, the price of petrol has gone up by rupees 3.50 per liter. But the oil companies were waiting to impose the same as they were waiting to have a more transparent and market-linked system.

The three major oil companies in Indian are - Indian Oil, Bharat Petroleum, and Hindustan Petroleum. They are working together to peg a mechanism where the oil prices in India are going to be linked to the international rates.

Till now, a fortnightly revision has been suggested but the duration of the change cycle is yet to be decided.

The above mentioned three companies hold 90 per cent of the retail market in India and any change by them is also going to have impact on the private oil companies as well.