Fuel prices continued their ascent, rising for the second consecutive day, with petrol inching towards a record high of Rs 91 a litre in Mumbai.

Petrol prices were at an all-time high at Rs 90.57 a litre while diesel prices inched higher to Rs 79.01 a litre, as per the data from Indian Oil Corporation.

In Delhi NCR, Chennai and Kolkata, the petrol prices were at Rs 83.22 per litre, Rs 86.51 per litre and Rs 85.03 per litre. Diesel prices in the three metros rose to Rs 74.42 a litre, Rs 78.69 per litre and Rs 76.27 per litre, respectively.

While fuel prices in all the four cities are at their record levels, rates are lowest in Delhi owing to lower taxes levied by the state government.

Ahead of the US sanctions, kicking in from November 4 on Iran, crude prices have been on an upward spiral with Brent prices reaching up to $80 a barrel.

Domestic fuel prices have been surging since mid-August due to various factors including rupee depreciation, high excise duty and rise in brent crude oil rates, which was up 18 cents, or 0.22 percent at $81.56 per barrel from its last close.

The government sees the rising fuel prices and falling rupee as a "small storm" for an otherwise robust Indian economy which it expects to sail through due to various steps, a senior Finance Ministry official said on Thursday.

Even as petrol and diesel prices are scaling new highs every day, petroleum minister Dharmendra Pradhan on Wednesday said reducing taxes on these items will not have any lasting impact due to the continuing volatility in crude prices.

Since January 2018, crude has rallied over 30 percent, while the rupee has lost almost 15 percent. The country meets 82 percent of its oil demand through imports.

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First Published:Sept 28, 2018 8:11 AM IST