After a negligible cut of 1 paisa in fuel rates yesterday, petrol price in India today was cut by 7 paise a litre and diesel by 5 paise by oil companies as global oil prices corrected from their November 2014 high levels.

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Petrol price in Delhi now stands at Rs 78.35 a litre, down from Rs 78.42, while diesel rates have been cut to Rs 69.25 per litre from Rs 69.30.

This is the second reduction in rates coming after price hikes for 16 straight days. The oil marketing companies IOC, BPCL and HPCL went on with daily price revision beginning May 14 after a nearly three-week hiatus just before Karnataka went to polls.

Petrol and diesel prices were yesterday cut by 1 paisa a litre each, which sparked a political backlash with opposition parties blasting the move. That reduction followed rates touching an all-time high of Rs 78.43 per litre for petrol and Rs 69.31 for diesel in Delhi on Tuesday.

Prices vary from state-to-state depending on local sales tax or VAT. Delhi has the cheapest price and Mumbai the highest among all metros and most state capitals. 

In the 16 consecutive increases since May 14, petrol price was hiked by Rs 3.8 per litre and diesel by Rs 3.38 in Delhi. 

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Meanwhile, the Kerala government on Wednesday said it will bring down by Re 1 per litre in the price of petrol and diesel from Friday. 

Kerala Chief Minister Pinarayi Vijayan reportedly told reporters that the state government will forego Re 1 from its tax portion. The cut in tax on these fuels will cost the state exchequer Rs 509 crore in a year.