The drop in fuel prices comes after more than six months of holding steady.
The prices of petrol and diesel have been slashed by 40 paise per litre. The new prices will be effective from 6 a.m. on Tuesday.
On Monday, the cost of petrol in the national capital was Rs 96.72, Rs 106.03 in Kolkata, Rs 106.31 in Mumbai and Rs 102.63 in Chennai.
The drop in prices was expected as international crude oil prices dropped and have remained stable for some time. The crude oil price has remained below 95 dollars per barrel for some time now.
The drop in fuel prices comes after more than six months of holding steady. The last reduction in price was on April 7 this year.