Petrol fell about 13 paise while diesel slipped in the range of 7-8 paise across major metro cities on Tuesday. Petrol stood at Rs 78.48 a litre, while diesel was at Rs 69.17 per litre in Mumbai.
According to the Indian Oil Corporation data, petrol costs Rs 72.86 per litre and diesel Rs 66 a litre in New Delhi. In Kolkata and Chennai, the petrol price stood at Rs 75.50 per litre and Rs 75.66 per litre while diesel was at Rs 68.19 per litre and Rs 69.71 a litre, respectively.
Prices of both petrol and diesel had jumped immediately after the government, in the Union Budget on July 5, announced that it will levy additional excise duty of Rs 2 per litre.
Of the Rs 2 hike, the road infra cess of Re 1 will go to the road ministry for infrastructure while the special duty of Re 1 will go to the revenue department.
Oil prices extended overnight gains on Tuesday amid widespread expectations the US Federal Reserve will cut interest rates for the first time in more than a decade this week. Brent crude rose 30 cents, or 0.5 percent, to $64.01 a barrel by 0013 GMT, after gaining 0.4 percent the previous session.
As per the country's dynamic pricing mechanism, the domestic fuel prices depend upon international fuel prices on a 15-day average and the value of the rupee.
(With Inputs from Reuters)