New Delhi, Sep 30 (IANS): Petrol will cost Rs.3.05 less a litre, excluding state taxes, and diesel will be expensive by 50 paise per litre from midnight Monday, state-run Indian Oil Corporation (IOC) announced.

The IOC said the decrease in petrol price was due to appreciation in the rupee value and reduction in international motor spirit (MS) prices.

"Decrease in petrol price has now become feasible because of reduction of MS prices and appreciation of rupee against the US dollar. Both these factors have resulted in the reduction of MS prices which is being passed on to the consumer," IOC said in a statement.

The IOC also effected an increase in diesel price. The government has asked IOC to do so every month.

"Even after the current increase, under recovery on retail diesel shall stand at Rs.10.52 per litre," the statement added.

The three state-owned oil marketing companies had last raised prices of petrol by Rs.1.63 per litre on Sep 14, 2013. Diesel prices were hiked by 50 paise a litre Sep 1.