The price of petrol has been slashed by Rs. 3 per litre - the steepest cut in more than four years - state-owned oil companies announced on Tuesday.
From Wednesday, the fuel will cost Rs. 63.09 per litre in Delhi.
The cut follows a fall in global oil prices coupled with a stable rupee against the US dollar.
This is the fourth straight cut in less than two months and the steepest since December 2008 when the rates were slashed by Rs. 5 to Rs. 45.62 per litre.
The rates were last decreased by Rs. 1.20/litre in Delhi on April 16.
HT first reported about the possibility of the cut on April 23.
In Mumbai, Chennai and Kolkata, petrol will now cost Rs. 69.73, Rs. 65.9 and Rs. 70.35, respectively.
There will be no immediate change in the price of diesel.
Indian Oil Corp (IOC), the nation's largest fuel retailer, said that since the last price reduction, international prices of crude oil have declined from $116.61 to $107 per barrel.
The rupee-US dollar exchange rate has also improved from Rs. 54.51 to Rs. 54.26.
"It has been decided to pass on the benefit to customers and accordingly the reduction in the retail selling price of petrol is being affected," IOC said.
The price of non-subsidised LPG cylinders has also been cut by Rs. 54 per cylinder in Delhi, bringing the cost down from Rs. 901 to Rs. 847.