New Delhi, May 31 (Zee News): A day after petrol and diesel prices were slashed by 1 paise per litre, the oil companies on Thursday reduced the prices further by 7 paise per litre for petrol and 5 paise per litre for diesel. The reduction in fuel prices on the second consecutive day comes after 16 days of incessant rise by oil firms.

There was confusion over the amount of reduction in the prices on Wednesday. While in morning there was an announcement about petrol prices going down by 60 paise in Delhi and 59 paise in Mumbai, and diesel prices going down by 56 paise in Delhi and 59 paise in Mumbai, it was later clarified by the Indian Oil Corporation that the reduction was of merely 1 paisa per litre.

"There was a technical glitch in posting the selling prices of petrol and diesel. The selling prices of petrol and diesel with effect from May 30, 2018 have been rectified. Today, there is a minor reduction in fuel prices," the IOC clarified shortly before noon.

With the latest dip in fuel prices, petrol stands at Rs 78.35 per litre in Delhi whereas it is Rs 86.16 per litre Mumbai. Price of diesel in Delhi is Rs 69.25 per litre and Rs 73.73 per litre in Mumbai.

Oil companies use 15-day rolling average of Singapore gasoline prices and Arab Gulf diesel prices to arrive at daily rates and so the fall in international oil rates seen in the last few days would be factored in for the revisions in the coming days.

The reduction comes after 16 consecutive price increases since May 14 when fuel retailers ended a 19-day pre-Karnataka poll hiatus to pass on a spike in global oil rates. In all, petrol price was increased by Rs 3.8 per litre and diesel by Rs 3.38 in that fortnight.

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.