Indian Oil Corporation (IOC) on Tuesday cut petrol prices by Rs 0.50 per litre and diesel by Rs 0.46 per litre with effect from midnight.
In a press statement, IOC said, "The current level of international product prices of petrol and diesel and the rupee-dollar exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision."
IOC also said that it will continue to monitor the movement of prices in the international oil market and INR-USD exchange rate.
It further added that the development of trends in the market will be reflected in future price changes.
However, sources said the government will shortly hike excise duty on petrol and diesel. Government sources also said that oil marketing companies (OMCs) have not passed on entire benefit to consumers.