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Similarly, the price build-up of diesel in Delhi at ₹71.15 a litre includes excise duty of ₹15.33, dealer commission of ₹2.51, and Value-Added Tax of ₹10.46 (including Value-Added Tax on dealer commission).

Retail prices of petrol and diesel breached record levels on Tuesday with Oil Marketing Companies (OMCs) raising rates by 16 paise per litre and 19 paise per litre, respectively, for the two automobile fuels.

He said high fuel prices were mostly influenced by worldwide factors. Diesel prices on the other hand have risen by Rs 2.56 a litre during this period.

"Apart from that, crises in countries like Venezuela and Iran are increasing". Since August 16, petrol prices have risen by over Rs 2 per litre and diesel by Rs 2.42 a litre.

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Petrol price in Delhi rose to a record Rs 79.15 a litre and diesel climbed to a fresh high of Rs 71.15, according to price notification of state-owned fuel retailers. This year in May, Bank of America Merrill Lynch observed that the deteriorating conditions in Iran may push the crude oil prices to United States dollars 100.

The prices of CNG and piped natural gas (PNG) were also hiked in metro cities since the price of gas procured by city distributors is mostly dollar-denominated. There is a pressure on oil prices due to a decrease in production. The graph of petrol and diesel prices is continuing its upward movement since last week. "Secondly, global currencies have weakened against the USA dollar", he said.

Globally, oil prices rose on Monday, supported by concerns that falling Iranian output will tighten markets once U.S. sanctions bite from November, but gains were limited by higher supply from OPEC and the United States. Oil company officials said price rise over two weeks has been mainly due to fluctuations in the rates of worldwide crude and a further weakening of the rupee vis-a-vis the dollar.


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