State-owned oil marketing companies (OMCs) reduced petrol price for the seventh consecutive day on Wednesday on the back of easing global crude oil prices.

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According to the IndianOil Corp data, petrol prices were cut by 12 paise to Rs 86.73 per litre while diesel prices were unchanged at Rs 78.46 in Mumbai.

The prices were also cut across New Delhi, Kolkata and Chennai, with petrol prices at Rs 81.25 per litre, Rs 83.10 per litre and Rs 84.44 per litre, respectively. Diesel remained unchanged at Rs 74.85 a litre in New Delhi, Rs 76.70 per litre in Kolkata and Rs 79.15 a litre in Chennai.

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

Global oil prices extended falls from the previous day, when crude slumped as much as 5 percent. Front-month Brent crude oil futures were at $76.37 a barrel at 0031 GMT, 7 cents below their last close.

Union petroleum minister Dharmendra Pradhan on Tuesday asked the Odisha government to reduce value added tax (VAT) in order to regulate diesel price, which is more expensive than petrol in the state. Diesel costs Rs 80.36 a litre in Bhubaneswar as compared to Rs 80.21 a litre for petrol.

Since mid-August, petrol and diesel prices have been on the rise. This has been the longest, in the recent past, that the fuel prices have been slashed. Various factors including rupee depreciation, high excise duty and rise in Brent crude oil rates have led to soaring domestic fuel prices.

Earlier this month, the government reduced excise duty on petrol and diesel by Rs 1.50 per litre and said the oil marketing companies (OMC) will absorb the impact to the tune of Re 1 per litre.

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