From Tuesday petrol will become costlier by 27 paise at over 18,600 retail outlets of Indian Oil Corp, building it the first state-run oil company to work out the pricing freedom proclaimed by the government on June 26.

Other public sector fuel retailers like Hindustan Petroleum and Bharat Petroleum will follow the market leader by raising petrol price between 28 and 26 paise, correspondingly, these was said two persons with direct knowledge of the progress. Senior executives of these companies were not available for remarks.

The news was busted by this supporter per’s news channel, ET Now. The move will promote private oil companies like Reliance Industries, Shell India and Essar Oil which could not price petrol and diesel at market rates due to below- cost pricing by public sector firms.

The three state-run oil companies control India’s fuel retail business with over 90% market share.

Since June 26 the price increase reveals an average revenue loss on petrol when the government untied retail prices of petrol and diesel based on the advices of the Kirit Parikh committee. Although, diesel price is also deregulated on paper, the government has not yet empowered state-run companies to fix its price due to fear of unpleasant political fight.