The Indian Oil Corporation on Thursday cut the price of petrol by 7 paise per litre and diesel by 5 paise per litre on the back of softening international oil rates. This is the second cut in prices in as many days. The state-run oil marketing company reduced petrol and diesel prices by just one paisa on Wednesday – a move that was mocked by social media users and Opposition politicians.

Petrol in Delhi now costs Rs 78.35 a litre, down from Rs 78.42. A litre of diesel in Delhi now costs Rs 69.25, down from Rs 69.30. In Mumbai, petrol on Thursday cost Rs 86.16 a litre, while diesel costs Rs 73.73 per litre.

State-run oil companies had resumed the dynamic pricing mechanism on May 14 after prices were frozen for 19 days between April 24 and May 13, when campaigning was on for the Karnataka Assembly elections.

International crude oil prices had risen during this period, while the rupee fell against the United States dollar – both factors make fuel costlier. Oil companies are estimated to have lost about Rs 500 crore because of the price freeze for three weeks, PTI reported.

On Wednesday, oil prices dropped to about $75 a barrel after Saudi Arabia and Russia announced their decision to relax restrictions on supply that had led to an increase in crude prices, Reuters reported.

On May 24, Union Minister of Petroleum and Natural Gas Dharmendra Pradhan had said the Centre is considering bringing petroleum products under the purview of the Goods and Services Tax. Earlier, he had said the Centre is deliberating on an “immediate solution” to control rising fuel prices.