In the second reduction in consecutive two days, petrol price was on Thursday cut by 7 paise a litre and diesel by 5 paise.
Petrol in Delhi 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.
This is the second reduction in rates coming 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.
Petrol and diesel prices were on Wednesday cut by 1 paisa a litre each. 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.
Earlier, it was reported that petrol price came down by 60 paise to sell at Rs 77.83 per litre in Delhi, diesel saw a decrease of 56 paise to sell at Rs 68.75 per litre. In Mumbai, petrol and diesel prices came down by 59 paise to sell at Rs 85.65 per litre and Rs 73.30 per litre respectively. However, the Indian Oil Corporation Limited (IOCL) later clarified that its website carried out wrong fuel prices due to some technical fault.
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.
(With PTI inputs)