New Delhi: Oil marketer Indian Oil Corp on Wednesday cut petrol and diesel prices each by Rs 2.per litre effective midnight, following a fall in international crude oil prices consequent to the Iran nuclear deal.

"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," IOC said in a statement here.

Petrol prices were last cut on June 30 by 31 paise per litre and diesel by 71 paise a litre in line with a fall in international oil rates.

IOC announced that the price of petrol per litre from Thursday will be Rs.66.90 in Delhi, Rs.71.57 in Kolkata, Rs.71.97 in Mumbai and Rs.67.29 in Chennai.

Diesel will cost Rs.49.72 a litre in Delhi, Rs.52.75 in Kolkata, Rs.55.15 in Mumbai and Rs.51.08 in Chennai.

However, after the Delhi government decided to increase the value added tax on the transport fuels, the retail price here for petrol will be Rs.69.43 per litre and for diesel, Rs.52.07 per litre.

The Indian basket of crude oil on Tuesday fell to $56.33 for a barrel of close to 160 litres. (IANS)