Fuel prices continued to fall on Monday, with petrol and diesel recorded at Rs 84.06 per litre and Rs 76.67 per litre, respectively in Mumbai.

In New Delhi, Kolkata and Chennai, petrol was at Rs 78.56 per litre, Rs 80.47 per litre and Rs 81.61 per litre, respectively, while diesel stood at Rs 73.16 a litre in New Delhi, Rs 75.02 a litre in Kolkata and Rs 77.34 a litre in Chennai.

Petrol price has been cut by more than Rs 4 per litre and diesel by Rs 2.33 in the last 18 days on softer international rates, a pace faster than the spike in prices witnessed in the two-month period beginning mid-August.

As per the country's pricing mechanism, under the daily dynamic pricing regime, domestic fuel prices depend on international fuel prices on a 15-day average, besides the value of the rupee.

Prices vary from region to region due to local taxes as the product is excluded from the GST regime. Delhi has the lowest tax rate among the four metro cities.

The United States said on Friday it will temporarily allow eight importers to keep buying Iranian oil when it re-imposes sanctions on Monday to try to force Iran to curb its nuclear, missile and regional activities.

Petroleum minister Dharmendra Pradhan said it won the waiver largely due to a forceful campaign by Prime Minister Narendra Modi. India had been vocal at international forums about rising oil prices and its impact on the economy.

(With inputs from agencies)