With international crude oil rates slipping below $55 a barrel, state-run oil marketers had a New Year Day gift of a cut petrol and diesel rates by Rs.2 a litre, excluding local taxes.
Allowing for local levies, petrol per litre from Thursday costs Rs.61.33 in Delhi, Rs.68.86 in Mumbai, Rs.68.65 in Kolkata and Rs.63.94 in Chennai.
The new per litre prices for diesel are Rs.50.51 in Delhi, Rs.57.91 in Mumbai, Rs.55.00 in Kolkata and Rs.53.78 in Chennai.
Petrol and diesel prices were last cut each by Rs.2 a litre on Dec 15, and prior to that on Dec 1 by 91 paise and 84 paise respectively.
Prices have also been cut for the non-subsidised LPG cylinder, that a consumer may buy at market rates after exhausting the quota of 12 cooking gas cylinders, by Rs.43.50 in Delhi.
The new year's price per 14.2 kg cylinder is Rs.708.50 in Delhi, Rs.725.50 in Mumbai, Rs.746 in Kolkata and Rs.705 in Chennai.
Earlier, to make up for fall in taxes due to the sustained decline in international crude oil prices, the government hiked excise duty by Rs.1.50 a litre on both the fuels first on Nov 12. Later, on Dec 2, the duty on petrol was hiked by Rs.2.25 per litre and on diesel by Re.1 a litre.
Though consumers have been spared the impact of the excise hike, with the current cuts the government has responded to critics that the excise hike was preventing the benefit of falling oil prices from passing to consumers.
In October, the government deregulated diesel prices by linking the fuel cost to market-based pricing.
The price of the Indian basket of crude oils on the last trading day Wednesday fell to $53.53 per barrel. A barrel is equal to 159 litres.