Petrol and diesel rates are decided on a daily basis by oil-marketing companies on the basis of the rupee-dollar rate and global crude oil prices.
NEW DELHI: Petrol and diesel prices rose across major cities on Sunday. While petrol prices went up by 14 paise, diesel prices have been hiked by around 30 paise.
In Delhi petrol is priced at Rs 81.82 per litre, up from Rs 81.64 on Saturday.With a similar hike, petrol is now being retailed at Rs 87.29 in Mumbai, Rs 83.66 in Kolkata, Rs 85.04 in Chennai.
The diesel in the four metros of Delhi, Kolkata, Mumbai and Chennai is at Rs 73.53, Rs 75.38, Rs 77.06 and Rs 77.73 per litre, respectively.The increase in transport fuel rates comes amid a continuous surge in crude oil prices.
Even before the excise duty cut, Rajasthan, West Bengal, Karnataka, Kerala and Andhra Pradesh had last month reduced VAT to cushion consumers for a spate of price increases.
On Thursday, 12 states slashed the prices of petrol and diesel after the central government announced a Rs. 1.5 per litre cut in excise duty and made state-run oil companies absorb a RS 1 per litre cut in fuel prices.
The value of the rupee against the dollar has a crucial role to play in determining retail fuel prices, given that a major chunk of global tradable crude oil is denominated in dollar terms and India imports majority of its crude requirements.
