The price cut, which was made possible because of a decline in international oil prices, is excluding local sales tax, or VAT.
After including VAT, the reduction in price of petrol in Delhi comes to Rs 1.02 per litre and the fuel will cost Rs 67.29 per litre from midnight tonight against Rs 68.34.
The price cut comes on the back of a Rs 2 per litre reduction in rates effected on March 16. This was the steepest cut in rates in nine months, which after including VAT resulted in a reduction of Rs 2.40 a litre in rates.
Petrol in Mumbai will cost Rs 1.07 less at Rs 74.14 per litre. In Kolkata, the price has been cut by an equal measure to Rs 74.72. It will cost Rs 70.34 a litre in Chennai against Rs 71.42 currently.
Announcing the reduction, Indian Oil Corp (IOC), the nation's largest fuel retailer, said international prices of petrol have declined from $122.74 per barrel to $119.23 a barrel since the last price change.
Also, the rupee-US dollar exchange rate has marginally declined from 54.40 per dollar to 54.28.
"Following this, it has been decided to pass on the benefit to customers and accordingly the aforesaid reduction in the retail selling price of petrol is being effected," it said in a statement.
Oil firms calculate the desired retail price on the 1st and 16th of every month based on average imported oil price on the previous fortnight. The price change was to have been announced yesterday but it was deferred because of March 31 being Sunday.