Petrol continues to climb, nears Rs 90 mark in Mumbai, diesel unchanged

Petrol prices in Mumbai inched up to the psychological Rs 90 a litre-mark and sold at Rs 89.69 in the country's financial capital on Friday, even as the fuel climbed to fresh highs across the four metros, while diesel rates were unchanged for the third consecutive day.

In the national capital, petrol was sold at Rs 82.32 per litre, up from Rs 82.22 per litre on Thursday, data on the Indian Oil Corp's website showed.

In the other key cities of Kolkata and Chennai, the fuel was priced on Friday at Rs 84.16 and Rs 85.58 per litre, respectively, up from Rs 84.07 and Rs 85.48 per litre.

The cost of transportation fuel has been on the rise since August 1, largely because of high crude oil prices and a falling rupee. Depreciation in the Indian rupee against the US dollar makes the import of crude oil expensive as transaction is done in dollars.

Inflationary risks along with broadly negative global cues depressed the Indian rupee to a new low of 72.91 against the US dollar on Tuesday.

Prices of the other key transportation fuel, diesel, however, was unchanged on Friday for the third day in a row.

Diesel prices in Delhi, Kolkata, Mumbai and Chennai were unchanged at Rs 73.87, Rs 75.72, Rs 78.42 and Rs 78.10 per litre, respectively.

Sector experts feel that high excise duty in the country also aided the high prices.

Cost of the fuel in all the key cities except Kolkata are at their record levels. The all-time high price of diesel in the West Bengal capital was Rs 75.82, recorded on September 11.

Earlier this week, the West Bengal government reduced the excise on petrol and diesel by Re 1 per litre each.

The Karnataka government also announced on Monday that petrol and diesel would be cheaper by Rs 2 per litre each across the state from Tuesday following the reduction in cess on these fuels.

As per the country's pricing mechanism, the domestic fuel prices depend upon the international fuel prices on a 15-day average and the value of the rupee.