With this, petrol has become cheaper by Rs 0.78 per litre (including taxes) with effect from December 1, 2011.
Excluding state levies, the cut comes out to be Rs 0.65 per litre.
Indian Oil Corporation (IOC) announced the cut on behalf of the industry. The company said the recent cut was in line with the declining international crude prices.
The companies had an over-recovery of Rs 0.65 per litre, so they decided to pass the benefit to consumers.
Though international crude prices have fallen from $116 a barrel to $109 a barrel, but the companies are not able to make good margins due to continuous depreciation in Indian Rupee.
Indian Rupee has breached the level of 52 a Dollar, which has wiped out all gains arising out of falling crude prices.
OMCs are still facing heat from other oil products like diesel, kerosene and LPG which are still under the control of the government. Petrol was deregulated by the government in June 2010.