Petrol and diesel prices surge in all metro cities as crude oil breaches $85 mark

Petrol and diesel prices surged up to Rs 17 paise across all metro cities on Tuesday, showing no sign of respite. While high crude prices and weakening currency is forcing oil marketing companies to increase fuel price, the central government is also reluctant on reducing the excise duty on petrol and diesel.

The central government charges Rs 19.48 excise duty on petrol and Rs 15.33 on diesel. Some states -- Rajasthan, Andhra Pradesh, West Bengal and Karnataka -- have slashed VAT to pass on the benefits to people, but most others seem to be clueless of the problems people are facing due to the continuously rising petrol and diesel prices. This year alone, petrol and diesel prices have been spiked by Rs 13.76 and 15.39, respectively, in the national capital. Prices have seen a similar hike in other metro cities as well.

Here are the prices of petrol and diesel across four major cities as per the Indian Oil's daily pricing formula.

• Delhi: Petrol Rs 83.85 per litre, up 12 paise; diesel Rs 75.25 per litre, up 16 paise
• Mumbai: Petrol Rs 91.20 per litre, up 12 paise; diesel Rs 79.89 per litre, up 17 paise
• Chennai: Petrol Rs 87.18 per litre, up 9 paise; diesel Rs 79.57 per litre, up 15 paise
• Kolkata: Petrol Rs 85.65 per litre, up 12 paise; diesel Rs 77.10 per litre, up 16 paise

Globally, crude oil is also seeing a continuous upward trend and has beaten all record of the last four years. Brent crude oil reached its peak level of $85.45 per barrel on Tuesday and US West Texas Intermediate (WTI) crude futures CLc1 marked $75.90 a barrel, their strongest since November 2014.

HSBC in its fourth quarter Global Economics outlook had said that "our oil analysts believe there is now a growing risk it (crude) could touch $100 per barrel". Reuters also quoted ANZ bank saying that "the market is eyeing oil prices at $100 per barrel".

India is the second-largest buyer of Iranian oil, but the US sanctions against Iran could force it to reduce oil supply or even cut it to zero. However, Iran Foreign Minister had last week said that Iran's "Indian friends have always been categorical in terms of their intention to continue economic cooperation and (the) import of oil from Iran". Experts suggest India could consider buying crude oil in rupee instead of the dollar from Iran if the need arises. Meanwhile, the Indian currency also declined against the US dollar at Rs 73.43 on Tuesday.

Edited by Manoj Sharma