New Delhi, Jul 1 (PTI) : Petrol price was on Thursday cut by 89 paise a litre and diesel by 49 paise a litre, the first decrease in rates in two months.

Petrol will cost Rs 64.76 a litre in Delhi from midnight tonight as compared to Rs 65.65 per litre currently, Indian Oil Corp, the nation's largest fuel retailer, announced.

Similarly, diesel will cost Rs 54.70 per litre as against Rs 55.19 a litre currently.

This is the first reduction in rates in two months. Petrol price was last hiked by 5 paise a litre on June 16 and diesel by Rs 1.26 a litre. Petrol prices in the four hikes since May 1 had been raised by Rs 4.52 a litre, while diesel rates had gone up by Rs 7.72 per litre.

"The current level of international product prices of petrol and diesel and Rupee-US Dollar exchange rate warrant decrease in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision," IOC said in a statement.

Barring an exemption on April 16, when price of petrol was cut by 74 paise a litre and diesel by Rs 1.30, the upward trend in rates had been a phenomenon since March 17.

After discounting the April 16 reduction, petrol prices have jumped by Rs 9.04 per litre since mid-March and diesel by Rs 11.05 per litre.

The movement of prices in the international oil market and Rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes, IOC added.