New Delhi, Jun 2 (NIE): The reduction in petrol and diesel prices continued for the fourth day on Saturday as oil firms cut rates of petrol and petrol by 9 paise each. The reductions come on the back of softening of international oil rates and the rupee gaining against the US dollar. Petrol in Delhi will now cost Rs 78.20 a litre, down from yesterday’s Rs 78.29. Diesel rates have been cut to Rs 69.11 per litre from Rs 69.20.

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. This is the fourth reduction in rates coming after 16 days of relentless price hikes that followed lifting of a nearly three-week hiatus on price revision just before Karnataka went to polls.

Petrol on Friday was cut by 6 paise and diesel by 5 paise. On Wednesday rates were cut by 1 paisa each. These reductions followed rates touching an all-time high of Rs 78.43 per litre for petrol and Rs 69.31 for diesel in Delhi on May 29. In the 16 consecutive increases since May 14, petrol price was hiked by Rs 3.8 per litre and diesel by Rs 3.38. The automobile fuel prices had reached a record high on Tuesday.

Meanwhile, the Oil & Natural Gas Corporation (ONGC) is reluctant to shoulder the burden of a cut in diesel and petrol prices and it seems more likely that the reduction will have to be effected through cuts in excise duty or state taxes.

At a meeting late Thursday at Petroleum Minister Dharmendra Pradhan’s residence, ONGC chairman Shashi Shanker has conveyed that the national explorer was “already in the red” after buying out Hindustan Petroleum Corp and bailing out Gujarat State Petroleum Corp in fiscal 2017-18.