The reduction, effective midnight tonight, excludes local sales tax or VAT and the actual cut will be higher, varying from city to city.
The price of petrol in Delhi will be lowered by 85 paise to Rs. 71.41 a litre. This follows a 75 paise a litre reduction on April 1, which translated into a cut of 90 paise in Delhi to Rs. 72.26.In Mumbai, petrol will cost Rs. 80 a litre from Wednesday as against Rs.80.89 at present.
Announcing the rate cut, Indian Oil Corp, the country's largest fuel retailer, said, "The continued appreciation of the rupee has resulted in reduction in petrol prices."
There will be no change in diesel prices as oil firms revise rates of the nation's most consumed fuel on a monthly basis.
For diesel, the government had in January last year decided to allow oil firms to raise rates by up to 50 paise a litre, excluding local levies, every month until losses on the fuel are wiped out.Since January 2013, diesel rates have risen by Rs. 8.33 over 14 monthly instalments. IOC said it still loses Rs. 5.49 on the sale of every litre of diesel.