Fuel prices cut for sixth straight day, petrol now costs Rs 86.81/litre in Mumbai

State-owned oil marketing companies (OMCs) reduced the prices of domestic transport fuels -- petrol and diesel -- for the sixth consecutive day on Tuesday on the back of easing global crude oil prices.

According to the IndianOil Corp data, petrol prices were cut by 10 paise to Rs 86.81 per litre while diesel prices were lower by 8 paise to Rs 78.46 in Mumbai.

The prices were also cut across the other three major cities. In New Delhi, Kolkata and Chennai, petrol prices were at Rs 81.34 a litre, Rs 83.19 a litre and Rs 84.53 per litre, while diesel stood Rs 74.85 a litre, Rs 76.70 a litre and Rs 79.15 a litre, respectively.

As per the country's pricing mechanism, the domestic fuel prices depend on international fuel prices on a 15-day average besides the value of the rupee.

Global oil prices were steady on Tuesday as Saudi Arabia pledged to play a "responsible role" in energy markets. Front-month Brent crude oil futures were trading at $79.87 a barrel at 0120 GMT, 4 cents above their last close.

Despite the lower domestic fuel prices, dealers in New Delhi will continue to keep around 400 petrol stations shut on Tuesday, the second day of the protest, demanding for a reduction in value-added tax (VAT) by the Delhi government on fuel.

Earlier this month, the government reduced excise duty on petrol and diesel by Rs 1.50 per litre and said the oil marketing companies (OMC) will absorb the impact to the tune of Re 1 per litre.

Since mid-August, petrol and diesel prices have been on the rise. This has been the longest, in the recent past, that the fuel prices have been slashed. Various factors including rupee depreciation, high excise duty and rise in Brent crude oil rates have led to soaring domestic fuel prices.