As a result, petrol has reached its all time high of Rs 81 per litre in Delhi while diesel costs Rs 73.08 per litre in the national capital. In Mumbai, petrol now costs Rs 88.39 per litre and for disel you have to shell out Rs 77.58 per litre.
Petrol and diesel prices have been rising for a while now owing to a falling rupee and rising international oil prices.
A fear that the US sanctions on Iran may end up contracting global oil supplies more than other producers can make up is pushing up oil prices. Crude oil prices have risen to $ 77 a barrel, gaining about $ 7 in a month.
Recently Andhra Pradesh as well as Rajasthan have announced cut in state taxes to rein in the rise of fuel prices.
However, despite protests, the central government has so far refused to cut duties in the hope that the rupee and oil prices will soon stabilise.
State oil companies factor in international fuel rates and the currency fluctuation to decide on local rates for petrol and diesel daily.