Fuel prices fell for the sixth consecutive day on Tuesday, with petrol and diesel at Rs 82.94 per litre and Rs 75.64 per litre, respectively in Mumbai.
According to the Indian Oil Corp data, petrol prices in New Delhi, Kolkata and Chennai, were at Rs 77.43 per litre, Rs 79.36 per litre and Rs 80.42 per litre, respectively, while diesel stood at Rs 72.19 a litre in New Delhi, Rs 74.05 a litre in Kolkata and Rs 76.30 a litre in Chennai.
Petrol price has been cut by more than Rs 5.35 per litre and diesel by Rs 3.71 in the last 28 days in Mumbai on softer international rates, a pace faster than the spike in prices witnessed in the two-month period beginning mid-August.
As per the country's pricing mechanism, under the daily dynamic pricing regime, domestic fuel prices depend on international fuel prices on a 15-day average, besides the value of the rupee.
Prices vary from region to region due to local taxes as the product is excluded from the Goods and Services Tax (GST) regime. New Delhi has the lowest tax rate among the four metro cities.
Last month, the centre announced a cut in excise duty by Rs 1.50 a litre. Additionally, the state-owned oil marketing companies had been mandated to reduce the prices of petrol and diesel by Re 1 a litre.
Saudi Arabia plans to reduce oil supply to world markets by 0.5 million barrels per day in December, its energy minister said on Sunday, as the OPEC power faces uncertain prospects in its attempts to persuade other producers to agree a coordinated output cut.
"We have been increasing production in response to demand," Khalid al-Falih told reporters in Abu Dhabi ahead of a joint OPEC, non-OPEC market monitoring committee meeting.
(With inputs from agencies)