The price of petrol was reduced by Rs 2.16 per litre while that of diesel was cut by Rs 2.10 per litre on Monday night. The price cut came after four weeks of increasing rates.

The new prices were effective Tuesday midnight. The cost of a litre of petrol in Delhi will now be Rs 65.32, against Rs 68.09. This includes VAT too, PTI reported. A litre of diesel will cost Rs 54.90, compared to Rs 57.35.

The Indian Oil Corporation, in a statement, said, “The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant decrease in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision.”

The prices were last revised on May 1, when petrol was made more expensive by one paise, and diesel by 44 paise.

State-run oil corporations will now revise the prices of petrol and diesel every day to reflect the volatility in the markets. The daily changes in rates will be based on the movement of prices in the international market. Oil firms will begin with implementing this scheme on a pilot basis in the five cities of Udaipur, Jamshedpur, Puducherry, Chandigarh and Visakhapatnam.