This is the first reduction in rates since January, 2009.

As per the new rates, petrol prices in Delhi will be Rs 66.42 per litre from Rs 68.64 earlier. Prices in Kolkata will be Rs 73.08 from Rs 71.23 earlier, in Chennai Rs 72.62 from Rs 70.77 earlier, in Mumbai Rs 73.71 from Rs 71.86 earlier.

The reduction, possible because of a fall in global oil rates, comes days after state-owned oil companies raised petrol prices by a steep Rs 1.80 per litre.

The average price of gasoline (petrol) in the first fortnight of November was about USD 5 per barrel lower than the rate which formed the basis for the price revision on November 3, said a top executive at one of the three state-owned fuel retail firms.

Gasoline, or petrol prices, averaged USD 115.85 per barrel during the first half of November, as against the USD 121.67 per barrel average during the second fortnight of October, which formed the basis for the Rs 1.80 per litre price increase.

In addition, the rupee has averaged Rs 49.20 per US dollar this month, higher than the Rs 49.40 per US dollar exchange rate in October.

Oil companies revise the price of petrol, which was freed from government control in June last year, on the basis of fortnightly average international oil prices.

This is the first reduction in petrol prices in 33 months. 

State-owned oil firms had on November 3 hiked petrol prices by Rs 1.80 per litre, the fourth increase this year, as the rupee fell from 46.29 a dollar to Rs 49.40 a dollar.

At the time of the price hike, they had stated that petrol prices would be reduced if the rupee does not depreciate further and international oil prices fall.

"Gasoline price are today lower than even crude oil price. But today, the rupee has gone touched a 32-month low of Rs 50.45 to a dollar. At the end of today, we will take an average for the fortnight and revise petrol rates," the official said.