Oil companies last reduced petrol prices on October 8 marginally by about Rs 0.57 per litre on account of softening of product prices globally on weak demand.
After the current reduction, petrol will now cost R67.24 per litre in the national capital.
The trends in the international oil market and INR-USD exchange rate are being closely monitored and the same shall be reflected in future price changes, IndianOil said in a statement, indicating that present cuts may be shortlived.
Despite deregulating the prices of petrol, oil marketing companies incurred a loss of Rs 2,000 crore on sale of petrol during April-September due to inability to revise retail selling prices to the desired extent in line with market conditions.
This was compounded by the finance ministrys refusal to compensate companies for their losses on petrol sales.
The oil companies are still facing losses on regulated fuel products. The current under-recovery on diesel is R9.84 per litre, for kerosene R31.30 per litre and for domestic cooking gas R478.50 per cylinder. The total expected under-recoveries for 2012-13 will be around R1,60,000 crore.