Diesel prices have reached the highest ever level in Mumbai, Delhi, Kolkata, and Chennai, according to data from Indian Oil Corporation. Consider this: diesel prices are at Rs 73.90 in Mumbai, Rs 69.61 per litre in Delhi Rs 72.46 per litre in Kolkata and Rs 73.54 per litre in Chennai.

Last time diesel prices reached all-time high on May 29 at Rs 73.79 in Mumbai, Rs 69.31 in Delhi, Rs 71.86 in Kolkata, and Rs 73.18 in Chennai.

Petrol and diesel prices have started rising sharply across India on the back of rising crude oil prices. With effect from 6 am on Tuesday, petrol prices are at Rs 85.47 per litre in Mumbai, Rs 78.05 per litre in Delhi, Rs 81.09 per litre in Kolkata and Rs. 73.38 per litre in Chennai.

Petrol prices touched an all-time high in Delhi and Mumbai on May 29, 2018 at Rs 78.43 per litre and Rs 81.06 per litre respectively.

The Centre currently levies a total of Rs. 19.48 per litre of excise duty on petrol. VAT, which is levied by state is at Rs 16.56 and dealer’s commission is at Rs 3.61. Dealer is charged petrol at Rs 38.26 against total taxes of Rs 39.65 (including dealers’ commission).

Retail inflation is also expected to go up due to a rise in fuel prices. With an increase in petrol prices, it is expected that the household budget may also increase as the cost of the transportation of agriculture and food products, which in turn impacts the inflation rate of the country, will also increase. The consumer inflation in July was at a nine-month low at 4.17 per cent, compared to 5 per cent in June, primarily due to high fuel costs.

Crude oil has been rising and more volatility is expected ahead given the impending sanctions on Iran by the United States along with a significant drop in the U.S. crude oil inventories.  Moreover, ongoing geopolitical tensions in the Middle East could pressure on crude oil prices.