Petrol prices across the country got a reduction of 7 paise to Rs 78.35 per litre in Delhi, Rs 80.98 in Kolkata, Rs 86.16 in Mumbai and Rs 81.35 in Chennai as per IOC's website.

On the other hand, diesel rates have been cut by 5 paise across the nation, priced at Rs 69.25 per litre in Delhi, Rs 71.8 in Kolkata, Rs 73.73 in Mumbai and Rs 73.12 in Chennai.

On Wednesday morning, state-owned oil marketer IOC (Indian Oil Corporation Limited) had cut petrol prices by 60 paise while diesel was reduced by 56 paise. In a few hours, however, it released a statement saying that there was a technical glitch and the prices were only reduced by one paise.

Meanwhile, Kerala Chief Minister Pinarayi Vijayan made an announcement on Wednesday that the state will reduce Re 1 on petrol and diesel prices sold in the state. He also said that this would cause an estimated loss of Rs 509 crore in state revenue. Kerala becomes the first state to reduce taxes levied on fuel prices amid the increased burden on consumers in recent times.

Goa had also made a similar move a few years ago but cutting a huge percentage of VAT charged by the state-government on petrol. It is still the only state where petrol is cheaper than diesel.

Petrol and diesel prices in India despite being derived from international crude oil rates have a large portion that goes to the central and state government in the form of excise duty and other taxes. International fuel prices fell on Saturday after Saudi Arabia and Russia said that they would increase their production to help curb shortage in global supply.