State-run oil marketing companies Monday cut petrol prices by Rs.0.56 a litre (excluding state levies in Delhi) effective midnight Monday.
In the national capital, petrol will now cost around Rs.67.90 per litre. The rates will vary from city to city depending on local taxes.
An Indian Oil Corp (IOC) release said: "It has been decided to revise the petrol prices downward by Rs.0.56 per litre (excluding state levies in Delhi) with effect from Oct 9."
It said the cut was decided after taking into consideration the fact that the rupee had been gaining against the dollar although international oil prices continued to remain firm.
"The trends in the international oil market and exchange rate shall be closely monitored and the same shall be reflected in future price changes," IOC said.
Petrol will cost Rs.67.90 per litre at IOC petrol pumps in Delhi as against Rs.68.46 a litre presently.
Petrol in Mumbai will be cut by 71 paise to Rs.74.43 and by 70 paise in Kolkata to Rs.75.44 a litre. In Chennai, it will cost Rs.71.48 per litre as against Rs.72.19 presently.
The government had in June 2010 deregulated petrol pricing, leaving oil companies free to fix rates in line with costs.
Petrol price were last revised on June 24 when they were hiked by 70 paise.
Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL), the other two state fuel retailers, are also expected to cut rates and prices at their pumps would vary by one or two paise.
IOC, BPCL and HPCL lost Rs.2,600 crore on sale of petrol during April-September "due to inability to change retail selling prices to the desired extent in line with market conditions," the IOC release said.
According to IOC, the three oil marketing firms are projected to lose Rs.160,000 crore in revenue on sale of the three regulated products - diesel, cooking gas (LPG) and kerosene - during the current fiscal.