Earlier on Wednesday, the price of regular petrol consumed by the masses shot up to ₹100.13 a litre in Rajasthan's Sri Ganganagar.
The record price in Rajasthan is despite the state government late last month cutting VAT on petrol and diesel by 2%.
VAT on petrol, after the cut, at 36% plus ₹1.5 per litre road cess is still the highest in the country. On diesel, the state levies 26% and ₹1.75 per litre road cess.
Diesel in Sriganganagar is priced at 92.47 a litre.
In Mumbai, petrol price rose to ₹96.32 a litre and diesel was priced at ₹87.32.
Why are costs rising?
Oil Minister Dharmendra Pradhan had blamed output cut by oil-producing nations for the rally in international oil prices that have translated into higher retail rates in India.
However, consumers in India are paying much higher than what they were paying last January, even though crude prices are yet to reach levels of early last year.
International oil prices have been rising since Saudi Arabia pledged additional voluntary output cuts of 1 million barrels per day in February and March last year under a deal between the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, a group known as OPEC.