New Delhi, Jul 15 (Agencies) : Oil marketing companies cut the price of diesel and petrol by Rs 2 per litre (excluding local levies) on sharp fall in global oil prices.

The price cut is effective from midnight tonight. OMCs revise the price of fuels on a fornightly basis.

The government has already deregulated the price of petrol and diesel, leaving it to the oil retailers such as Indian Oil, HPCL and BPCL to sell the fuels at their rates.

The price cut comes after petrol and diesel price was raised in Delhi by Rs 2.78 (approximately) per litre and Rs 1.83 (approximately) per litre, respectively on imposition of VAT by the state government, earlier in the day.

After the price cut, petrol price in Delhi would become costlier by Rs 0.78 but diesel would become cheaper by Rs 0.17 paise per litre.

Prices of petrol and diesel were last revised with effect from 1 July 15. Since last price change, there has been a decrease in international prices of both petrol and diesel. INR-USD exchange rate has also appreciated during this period. Combined impacts of both these factors warrant the said downward revisions, Indian Oil said.