Diesel prices have also gone up in tandem with the petrol prices. With a hike of 12 paise, the key transportation fuel is being retailed at Rs 74.24 in Delhi. Similarly, diesel prices are up 13 paise in Mumbai to Rs 78.82 per litre.
Oil Minister Dharmendra Pradhan on Wednesday said reducing taxes on these items will not have any lasting impact due to the continuing volatility in crude prices.
"The basic problem is that crude prices are volatile. The effect of any measures, including reduction in VAT by the states and the Excise duty by the Centre will not last long due to the volatility in crude prices," he told reporters.
The minister, however, said higher prices is a matter of concern and government is finding ways to offer some relief to the public.
Ahead of the US sanctions, kicking in from November 4 on Iran, crude prices have been on an upward spiral and Brent--the benchmark price for the Indian crude basket--is trading over $80 a barrel now. Compounding the matter, the rupee has been plumbing new lows having already touched the 73-mark last week.
 "Petrol diesel price hike")