New Delhi, May 31: Petrol price was on Thursday cut by 7 paise a litre whereas, diesel rate saw a reduction of 5 paise. This is the second reduction in as many days on the back of softening international oil rates. In Delhi, petrol now costs Rs 78.35 a litre, down from Rs 78.42, according to a price notification issued by state-owned oil firms. Diesel rates have been cut to Rs 69.25 per litre from Rs 69.30. (Click Here For June 1 Petrol, Diesel Price) Also Read - Coronavirus: As Second-Last Day of Lockdown 4.0 Ends, Here's Where The Four Most-Affected States Stand

Petrol and diesel prices were on Wednesday cut by 1 paisa a litre each after a 16-day relentless price hike that followed lifting of a nearly three-week hiatus on price revision just before Karnataka went to polls. 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. Also Read - 4 Steps Ahead of COVID-19, Can't be in Permanent Shutdown, Says Kejriwal Ahead of Possible Lockdown Extension

On Wednesday, the government finally explained the much-talked-about 1 paisa drop in the fuel prices. Petroleum Minister Dharmendra Pradhan told ANI, “Since we moved to the mechanism of daily price change, prices have gone up & down by 1 paisa, 12 paise, 27 paise etc; it is not for the first time that there has been a change of 1 paisa. However, today one of your employees made a mistake & we accept it.” Also Read - Lockdown in Delhi: Containment Zones in Capital Rises to 102 as COVID-19 Tally Crosses 17,000-mark - Full List Here

He also welcomed Kerala government’s move of cutting the fuel price by Re 1 earlier in the day. “I welcome it. One must also note that Kerala is one of the highest tax collecting states and when we appealed (for fuel price cut), their Finance Minister gave negative statement, but now they took responsibility, I thank them for it…They did good by reducing the price. All states, whether governed by the BJP or Opposition, should try to reduce fuel prices but each state has different priorities & responsibilities,” he said.

Prices vary from state-to-state depending on local sales tax or VAT. Delhi has the cheapest price 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.