Petrol prices were cut on by 85 paise per litre with effect from midnight on Monday, the second reduction in rates in two weeks.
The price cut is due to fall in international oil prices and is excluding local sales tax or VAT.
The price cut comes on back of the Rs 2 a litre reduction in rates effected on March 16. This was the steepest cut in rates in nine months which after including VAT resulted in a reduction of Rs 2.40 a litre in rates.
After including VAT, the reduction in price of petrol in Delhi comes to Rs. 1.02 per litre and the fuel will cost Rs. 67.29 per litre from midnight tonight against Rs 68.34.
Petrol in Mumbai will cost Rs. 1.07 less at Rs. 74.14 per litre. In Kolkata, the price has been cut by an equal measure to Rs. 74.72. It will cost Rs. 70.34 a litre in Chennai from Tuesday against Rs 71.42 currently.
According to the reports, since the last price change international prices of petrol have declined from USD 122.74 per barrel to USD 119.23 a barrel. Also, the rupee-US dollar exchange rate has marginally declined from Rs. 54.40 to a U.S. dollar to Rs. 54.28.
Announcing the reduction, Indian Oil Corp (IOC) said in a statement, "Following this, 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 effected."