New Delhi, Oct 15: Petrol price has been cut by Rs. 1 per litre, but the first reduction in diesel rates in over five years will have to wait till completion of assembly polls.
The revised prices will be applicable from the midnight of 14th and 15th October.
State-owned oil firms, which cut petrol price by 54 paise on October 1, reduced rates by another Rs. 1 per litre excluding local sales tax or VAT with effect from midnight tonight, Indian Oil Corp (IOC) said.
The price revision was due on Wednesday evening but was announced Tuesday ahead of polling in Maharashtra and Haryana.
After accounting for the incidence of local sales tax, petrol rate in Delhi was reduced by Rs. 1.21 a litre to Rs. 66.65 per litre, according to Indian Oil, the country's largest fuel retailer.
In Mumbai, petrol price was cut from Rs. 75.73 to Rs. 74.46 per litre.
"Since last price change, international petrol prices have continued to show a downward trend. However, the INR-USD exchange rate has depreciated. Despite INR-USD depreciation, the fall in international oil prices warrant a decrease in selling price of petrol in the domestic market."
"Thus a downward revision in selling price of petrol by Rs. 1.00 /litre (excluding state levies) is being effected from midnight of 14th/15th Oct'14. With this price revision, Retail Selling Price at Delhi shall decrease by Rs. 1.21/litre (including VAT), with corresponding decrease in other states," IOC said.
A Rs. 2.50 per litre cut in diesel prices is likely after results of assembly polls in Maharashtra and Haryana are announced on Sunday.
The price of diesel, the nation's most consumed fuel that has a direct bearing on prices of essential commodities as it is the preferred fuel for the transport sector, is controlled by the government, while that of petrol is market-determined.
The fall in international oil rates last month led to situation where state-owned oil firms started making profit on diesel sales, the first time in history.
However, the benefit could not be passed on to consumers as the model code of conduct had come into place with the announcement of elections to Maharashtra and Haryana assemblies.
Since reduction in rates would have been a new policy, a revision was deferred.
The rupee, which plays an important role in oil prices, ended lower at 61.41/42 per dollar on Tuesday - its weakest close since October 1.