Petrol price increased by 14 paise to Rs 85.47 per litre while diesel price inched towards Rs 74 a litre mark in Mumbai on Tuesday.

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Diesel prices touched new record high while prices of petrol too inched near their all-time peak across major cities after a fall in rupee made imports costlier.

Diesel is mostly used in transportation of food and agricultural products and an increase in its price may lead to higher inflation.

The surge in fuel prices is largely attributed to the recent rise in crude oil cost and the high excise duty levied on transportation fuel in the country.

The rise in the fuel price is directly related to the Indian rupee, which retreated sharply to hit a record closing low of 70.16 against the US dollar on Monday.

India imports over 80 percent of its oil needs and spent Rs 5.65 lakh crore on importing 220.43 million tonne (MT) of crude oil in 2017-18. For 2018-19, the imports are pegged at almost 227 MT.

(With inputs from IANS)