Fuel prices edged higher across all the major cities on Friday for the fifth consecutive day with Mumbai recording petrol price at Rs 87.94 per litre and diesel at Rs 78.51 per litre.

In New Delhi, Kolkata and Chennai, petrol prices were at Rs 82.48 a litre, Rs 84.31 a litre and Rs 85.73 per litre, respectively. Diesel prices also rose in metros, a litre of petrol was being sold for Rs 74.90, Rs 76.75 and Rs 79.20.

Since mid-August, the petrol and diesel prices had been on the rise after the daily price revision was introduced in mid-June last year. Various factors including rupee depreciation, high excise duty and rise in Brent crude oil rates have led to soaring domestic fuel prices.

Brent crude futures edged up 13 cents to $80.39 a barrel by 0042 GMT. The contract fell 3.4 percent on Thursday, after hitting a low of $79.80, its weakest since September 24.

Allaying concerns about the return of fuel subsidy regime, a top finance ministry official on Thursday said the government had asked oil PSUs to subsidise petrol and diesel prices by Re 1 per litre was a "one-time thing" and it does not intend to ask them to do it again.

Just last week, the government had cut excise duty on petrol and diesel by Rs 1.50 per litre and asked state-owned oil marketing companies (OMCs) to subsidise the two fuels by another Re 1 a litre.

But most of the Rs 2.50 per litre reduction in rates effected from October 5 has been lost in increases in selling prices on subsequent days, giving rise to the suspicion that the government may again ask OMCs to subsidise fuel.

First Published:Oct 12, 2018 9:07 AM IST