Diesel prices across major cities rose for the third consecutive day on Wednesday, while petrol prices remained unchanged. The government intervened last week in regulating the prices by reducing excise duty on petrol and diesel.

In Mumbai, petrol stood at Rs 87.73 a litre, while diesel prices edged to Rs 77.93 a litre. In New Delhi, petrol and diesel prices were at Rs 82.26 a litre and Rs 74.35 a litre, respectively.

In Kolkata, petrol was at Rs 84.09, while diesel stood at Rs 76.20 per litre. Whereas, petrol and diesel in Chennai were at Rs 85.50 per litre and Rs 78.61 per litre.

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.

On Wednesday, Brent crude futures were down 2 cents at $84.98 a barrel by 0049 GMT, after a 1.3 percent gain on Tuesday.

Meanwhile, union minister Vijay Goel rode a cycle in Delhi's Paharganj area on Tuesday to protest against the Arvind Kejriwal-led government for not reducing the value added tax (VAT) on petrol and diesel prices.

Goel claimed the Delhi government was not paying heed to people suffering due to rising fuel prices. The Kejriwal government realises Rs 29 as VAT on petrol and diesel, he claimed.

The excise duty cut on petrol and diesel is credit negative for India as it will reduce government revenue and increase fiscal deficit by 0.1 percent to 3.4 percent of GDP in the year ending March 2019, Moody's Investors Service said on Tuesday.

The government on Friday cut excise duty on petrol and diesel by Rs 1.5 a litre, sacrificing Rs 10,500 crore revenue in the current financial year.

"Overall, excise duty cuts are credit negative, because they will reduce government revenue collection and increase India's fiscal deficit," Moody's said in a statement.