In the first reduction in rates in over a year, the petrol price on Wednesday was cut by 18 paise per litre and diesel by 17 paise a litre as international oil prices tumbled to the lowest since early February.
Petrol price was cut to Rs 90.99 a litre in Delhi from Rs 91.17 per litre, according to a price notification of state-owned fuel retailers.
Diesel now comes for Rs 81.30 a litre in the national capital, down from Rs 81.47 previously.
Prices of petrol in Mumbai, Chennai and Kolkata were Rs 97.40, Rs 92.95 and Rs 91.18 per litre, respectively.
Similarly, in Mumbai, Chennai, and Kolkata, diesel was sold for Rs 88.42, Rs 86.29 and Rs 84.18 per litre, respectively.
Rates have been reduced across the country and vary from state to state depending on the local incidence of taxation (VAT).
This is the first reduction in fuel prices in over a year. Prices were last reduced on March 16, 2020.
Despite bouts of rate freeze, prices had gone up by a record Rs 21.58 per litre on petrol in the last one year. On diesel prices had increased by Rs 19.18 a litre.
Retail prices of the two automobile fuels are revised daily. The domestic fuel rates are revised on the basis of crude prices in the international market.
Since the beginning of February crude has gained more than $7 per barrel that pushed OMCs to increase fuel prices on 14 occasions raising the prices by Rs 4.22 per litre for petrol and by Rs 4.34 a litre for diesel in Delhi. Crude has now slipped 6 per cent in the last seven days and is now sitting a tab lower around $ 64 a barrel on the back of rising US inventory.
Crude oil futures on Tuesday fell 1.32 per cent to Rs 4,418 per barrel as participants reduced their positions on low demand. On the Multi Commodity Exchange, crude oil for April delivery eased by Rs 59, or 1.32 per cent, to Rs 4,418 per barrel with a business volume of 4,145 lots. West Texas Intermediate crude oil was trading 1.32 per cent lower at USD 60.75 per barrel, while Brent crude was quoting 1.32 per cent down at USD 63.77 per barrel in New York.
(With inputs from PTI)