The price cut, which was made possible because of fall in international oil prices, excludes local sales tax or VAT.
After including VAT, the reduction in price of petrol in Delhi comes to Rs 1.20 per litre and the fuel will cost Rs 66.09 per litre from midnight tonight against Rs 67.29.
However, there will be no change in diesel prices even though today was the appointed day for putting into effect the government decision to hike rates by 40-50 paise a litre.
Today's cut in petrol price comes on the back of 85 paise a litre reduction in rates on April 2 and Rs 2 a litre decrease effected on March 16. The March 16 cut after including VAT translated into a Rs 2.40 a litre reduction at pumps. It was the steepest cut in nine months.
Petrol in Mumbai will cost Rs 1.26 less at Rs 72.88 per litre. In Chennai, the price has been cut by an equal measure to Rs 69.08. It will cost Rs 73.48 a litre in Kolkata from tomorrow against Rs 74.72.
Announcing the reduction, Indian Oil Corp (IOC), the nation's largest fuel retailer, said since the last price change international prices have declined from USD 119.23 per barrel to to USD 116.61 a barrel.
"Rupee-US dollar exchange rate has, however, deteriorated slightly from Rs 54.28 to a US dollar to Rs 54.51," it said, adding it was decided to pass on the benefit of reduced oil prices to customers.
IOC, however, did not say why the rates of diesel, which as per the January decision of the government are to be hiked by 40-50 paise per litre every month till all of the losses on the fuel are eliminated, were not changed. The company said it is losing Rs 6.48 a litre on diesel.