State-run oil marketing companies reduced petrol and diesel prices on Saturday by 13 paise and 12 paise respectively. As a result, diesel price dropped below Rs 73 a litre mark while petrol saw a second reduction in rates in six months.
In Delhi, the price of petrol fell to Rs 81.86 a litre from Rs 81.99 per litre. This is the second reduction in rates after September 10 when rates were reduced by 9 paise a litre.
Diesel price, on the other hand, fell to Rs 72.93 per litre in the national capital from Rs 73.05. Diesel rates had seen their first reduction since mid-March on September 3. Since then, rates have fallen by 63 paise.
Petrol prices in Mumbai, Chennai and Kolkata fell to Rs 88.51, Rs 84.85 and Rs 83.36 respectively.
Whereas, diesel prices were at Rs 79.45 in Mumbai, Rs 78.26 in Chennai and Rs 76.43 in Kolkata.
September 3 marked the first reduction in diesel price since mid-March when Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) froze rates for 82 days to adjust a record hike in excise duty on auto fuels against falling benchmark cost.
Diesel rates had gone up by Rs 12.55 a litre between June 7, when oil firms resumed revising prices in line with cost, and July 25. Diesel price has remained unchanged in the country since July 25, except in Delhi where a reduction in VAT lowered the rate by Rs 8.38 per litre.
Petrol price went up by Rs 9.17 per litre between June 7 and June 29 before hitting a pause. The revision cycle again started on August 16 and rates have gone up by Rs 1.51 since then. In all, the petrol price has risen by Rs 10.68 since June 7.
Oil companies review petrol and diesel rates on a daily basis and any revision is implemented from 6 am in the morning. This revision mostly depends on the average price of benchmark fuel in the preceding 15 days.