PETROL, DIESEL PRICES TOUCH NEW HIGH

New Delhi, Sept. 3: Petrol and diesel prices in the country touched their highest levels Monday mainly due to fall in rupee and a sharp rise in crude oil rates.

Petrol price in Delhi rose to a record `79.15 a litre and diesel climbed to a fresh high of `71.15, according to price notification of state-owned fuel retailers.

This follows a 31 paise/litre hike in prices on Monday. Rates have breached the previous high of `78.43 a litre hit on May 28. On that day, the rate in Mumbai was `86.24 per litre.

A litre of petrol in Mumbai costs `86.56 on Monday. Prices in Delhi are the cheapest in all metros and most state capitals due to lower sales tax or VAT.

Diesel rates on Monday were hiked by 39 paise a litre, the steepest increase since the daily revision in prices was introduced in mid-june 2017. Diesel now costs `75.54 per litre in Mumbai.

Since August 16, petrol prices have risen by over `2 per litre. Diesel prices on the other hand have risen by `2.42 a litre during this period.

Diesel rates had hit `69.31 a litre on May 28, but this record was breached on August 27 and on Monday they hit a fresh high. Fuel prices vary from state to state due to local levies.

Officials said the spike in rates is on account of exchange rate falling to a record `71 to a dollar, depreciating by `2.5 in a month. Also, crude oil has gained $7 a barrel in a fortnight, driven by fears that the US sanctions on Iran will likely contract supplies.