Prices of diesel were lowered marginally on Thursday, marking its first cut for the first time in close to six months after state-owned fuel retailers reduced retail selling rate by 16 paise per litre.

In the national capital diesel was now at Rs 73.40 per litre, as against Rs 73.56 a litre previously, according to a price notification of state-owned fuel retailers.

Petrol, which witnessed the second rally in rates beginning mid-August, was unchanged at Rs 82.08 a litre.

Thursday’s cut is the first reduction in diesel price since mid-March. It was then when Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had kept the diesel rates unchanged 82 days to adjust a record hike in excise duty on auto fuels against falling benchmark cost.

Before the latest reduction, diesel rates had gone up by Rs 12.55 a litre between June 7 and July 25. Diesel price has remained unchanged in the country since July 25, except in Delhi where a reduction in VAT lowered the rate by Rs 8.38 per litre.

Petrol price went up by Rs 9.17 per litre between June 7 and June 29 before hitting a pause. The revision cycle again started on August 16 and rates have gone up by Rs 1.51 since then. In all, the petrol price has risen by Rs 10.68 since June 7.

In Mumbai, petrol comes for Rs 88.73 per litre while diesel is priced at Rs 79.94, as against Rs 80.11 previously, according to the price notification.

In Kolkata, petrol is priced at Rs 83.57, while diesel now costs Rs 76.90 a litre, down from Rs 77.06 previously.

In Chennai, petrol comes for Rs 85.04 a litre and diesel for Rs 78.71, as against Rs 78.86 previously.

State-owned fuel retailers revise rates of petrol and diesel daily based on average price of benchmark fuel in the preceding 15 days.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) review the rates for petrol and diesel in various parts of the country on a regular basis. The three organisations implement any changed in the rates at fuel pumps with effect from 6 am daily.