Petrol price was today cut by 85 paise per litre with effect from midnight tonight, the second reduction in rates in two weeks.
The price cut, which was made possible because of fall in international oil prices, is excluding local sales tax or VAT.
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.
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.
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 tomorrow against Rs. 71.42 currently.
Announcing the reduction, Indian Oil Corp (IOC), the nation's largest fuel retailer, said since the last price change international prices of petrol have declined from $122.74 per barrel to $119.23 a barrel.
Also, the rupee-US dollar exchange rate has marginally declined from Rs. 54.40 to a US dollar to Rs. 54.28.
"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," it said in a statement.
Oil firms calculate the desired retail price on 1st and 16th of every month based on average imported oil price on the previous fortnight. The price change was to have been announced yesterday but it was deferred because of March 31 being Sunday.