In the steepest reduction in the last five years, petrol prices on Tuesday were cut by Rs3 a litre, a change which would be effective from midnight, owing to decline in international crude prices.
The cut, which is the fourth since March means that petrol in Delhi will now cost Rs63.09 a litre with effect from midnight tonight as against Rs66.09 per litre currently.
The latest cut is the steepest since December 2008 when rates were slashed by Rs 5 to Rs 45.62 per litre.
However oil firms have not raised diesel prices this month apparently owing to Assembly elections in Karnataka, the home state of Petroleum Minister M Veerappa Moily, which are scheduled to be held on May 5.
Rates will vary from city to city depending on local sales tax or VAT. In Mumbai, petrol price has been cut by Rs3.15 to Rs 69.73 per litre, while the fuel in Kolkata will cost Rs70.35 from tomorrow as against Rs73.48 per litre. The reduction in rates in Chennai would be Rs3.18 per litre to Rs65.90.
Tuesday's price cut comes after three consecutive rate reductions. State-owned oil firms, which revise rates every fortnight, had from April 16 cut petrol price by Rs 1.20 a litre in Delhi.
On March 16, the rates were cut by Rs2.40 per litre and by Re 1 in the following fortnight.Announcing the reduction, Indian Oil Corp (IOC), the nation's largest fuel retailer, said that since the last price change, international prices have declined from $116.61 per barrel to $107 a barrel.
The rupee-dollar exchange rate too improved from Rs54.51 to a dollar to Rs 54.26.
“Thus, it has been decided to pass on the benefit to customers and accordingly the aforesaid reduction in the retail selling price of petrol is being affected,” an IOC statement said.