State-run oil marketing companies (OMCs) have hiked diesel rates across the country for the 2nd consecutive day by at least 25 paise. The hike in diesel rates come in the wake of rising international crude oil prices.

While there has been no change in petrol rates for 22 straight days, there are chances that OMCs will consider an upward revision soon due to a sharp rally in crude oil prices over the past few weeks.

Diesel price has gone above Rs 89 per litre after the fresh hike, while it is inching closer to Rs 97 per litre in Mumbai. The rate in Kolkata has jumped to Rs 92.42 per litre and Rs 94.08 in Chennai.

Recap | Check Sunday’s fuel prices

Prices have seen an equal jump in all other major cities in the country. On the other hand, petrol price remains steady but on the higher side. It costs Rs 101.19 per litre in the national capital and above Rs 107 per litre in Mumbai. Petrol is retailing at Rs 101.62 per litre in Kolkata and Rs 99.12 per litre in Chennai.

The fact that fuel prices have started rising again could be a major worry ahead of the festive season as it would lead to prices of several commodities rising. This is because rising fuel and power rates directly impact the input costs of companies, resulting in a hike in many essential and non-essential goods.

Even as economists have raised concern over rising fuel prices, the Centre and state governments have made it clear that there won’t be any cut in taxes levied on petrol and diesel.

It may be noted that India levy one of the highest taxes on petrol and diesel. Earlier this month, the proposal to include petroleum products under the Goods and Servies Tax (GST) was also rejected. This means there will be no substantial drop in fuel prices soon.

Petrol and Diesel prices in major Indian cities: