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Petrol and diesel prices set fresh highs as fuel rates were increased further on Tuesday. A litre of petrol was being sold in New Delhi for Rs. 80.87, in Kolkata for Rs.83.75, in Mumbai for Rs. 88.26, and in Chennai for Rs. 84.07, according to the largest fuel retailer, Indian Oil Corporation (IOC). Diesel was being sold at the rate of Rs.72.97/ litre in New Delhi, Rs. 75.82/ litre in Kolkata, Rs.77.47/ litre in Mumbai, and Rs. 77.15/ litre in Chennai.

On Monday, Andhra Pradesh government announced a reduction of tax on petrol and diesel by Rs. 2 a litre.

On Sunday, poll-bound Rajasthan slashed the tax on petrol and diesel. Chief Minister Vasundhara Raje announced a 4 per cent reduction which brought the prices of the two commodities down by Rs. 2.5 per litre in the state.

The Centre currently levies a total excise duty of Rs. 19.48 per litre of petrol and Rs. 15.33 per litre on diesel. On top of this, states levy Value Added Tax (VAT) -- the lowest being in Andaman and Nicobar Islands where 6 per cent sales tax is charged on both the fuels.

Petrol and diesel rates are revised on a daily basis by oil-marketing companies, after considering global crude oil rates and the movement of the rupee against the US dollar. The rupee has been plunging to hit fresh lows almost every day this month and has sunk 11.6 per cent so far against the dollar this year.

In the global markets, US West Texas Intermediate (WTI) crude futures were at $67.61 per barrel at 0112 GMT or 6:42 am IST, up 7 cents from their last settlement, according to a report by news agency Reuters. Brent crude futures climbed 11 cents to $77.48 a barrel.

Petrol Prices Near 90 Rupees In Mumbai, Above 80 Rupees In Other Metros
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