The price changes announced by oil companies are excluding local sales tax or VAT and will be effective midnight tonight, oil companies announced.
Petrol price in Delhi will be cut by Rs 1.38 to Rs 71.02 per litre, while it will cost Rs 78.04 a litre in Mumbai as against Rs 79.49 currently.
The reduction comes on back of a Rs 3.05 per litre (Rs 3.66 after including VAT) cut in rates effected from October 1.
Prior to that, petrol prices had since June risen seven times, totalling Rs 10.80 per litre, excluding VAT (Rs 13.06 after including state tax) as the rupee depreciated sharply against the rupee.
In a parallel move, diesel price was hiked by 50 paise, excluding VAT, in line with the January decision of the government allowing oil companies freedom to raise prices in small doses every month to wipe out mounting losses.
The diesel price in Delhi has been hiked by 56 paise to Rs 53.10 per litre while it would cost Rs 60.08 in Mumbai from tomorrow as compared to Rs 59.46 currently.
Today's hike is the 10th since the January 17 and most of the losses on diesel sales should have been wiped out by now to make the fuel market priced. But the fall in rupee, around 25 per cent since April, has worsened the situation and losses mounted to Rs 14.50 per litre.
However, the recent firming of rupee against US dollar and monthly increases have trimmed these losses to Rs 9.58.
Diesel rates have risen by a cumulative Rs 5.95 this year.