New Delhi, July 2 Petrol and diesel prices rise by as much as 10 percent in India, on Wednesday, the first increase this year and one of the steepest ever.

Petrol prices rose by four rupees a litre, while diesel rates were hiked by two rupees a litre.

The price hike did not go down well with the common people who expressed their helplessness at the situation.

"The sudden increase in the prices is very strange. It will definitely burn holes in the pockets of the common people. This is pre-budget increase god knows what will happen after the budget has been passed." said Puneet, a customer.

The hike in the fuel prices will burden the people already reeling under the impact of recession. It may trigger talk of further freight hike by the transporters.

"The price of petrol and diesel was hiked by four rupees and two rupees respectively. Let's see what happens in future. The price hike will cause many problems for the common man, but we can't say how much further increase there will be in the prices of fuel," said Ishmeet Singh, another customer.

Prices were last raised in June last year, when the average price of India's crude imports were 113 dollar a barrel, but they were cut in December and again in January as oil prices tumbled.

The government has not increased the price of cooking gas and kerosene to protect the poor and middle-class.

Despite price increase, oil firms say they were likely to suffer a revenue loss of 560 billion rupees on sale of petrol, diesel, cooking gas and kerosene this fiscal. (ANI)