New Delhi, Jun 15 (PTI): Petrol price was today cut by Rs 1.12 per litre and diesel by Rs 1.24 per litre, the last of the fortnightly revisions after which daily correction in rates in step with cost will be implemented.

From tomorrow, petrol and diesel rates will be revised in sync with any movement in international oil rates. Rates will change at 6 am everyday depending on movement in cost on the previous day.

Currently, prices are revised on 1st and 16th of every month based on the fortnightly average of international oil price and the foreign exchange rate.

The last of such revision was announced today when petrol price was reduced by Rs 1.12 per litre, excluding state levies (VAT), and diesel by Rs 1.24 a litre, said Indian Oil Corp, the nation's largest fuel retailer.

Actual reduction would be higher after taking into account local sales tax or VAT.

Petrol will cost Rs 65.48 a litre in Delhi from tomorrow as against Rs 66.91 per litre currently. A litre of diesel will cost Rs 54.49 as compared to Rs 55.94 at present.

IOC said daily revision of retail selling price of petrol and diesel on pilot basis was implemented in Chandigarh, Jamshedpur, Puducherry District, Udaipur and Visakhapatnam from May 1.

"On the same lines, IOC intends to start revising retail selling prices of petrol and diesel across the country on a daily basis with effect from June 16. The prices declared on a daily basis shall be applicable from 6 AM to 6 AM the next day," IOC said in a statement.

The reduction in rate announced today comes on the back of Rs 1.23 a litre hike in petrol rates on June 1 and Rs 0.89 a litre in diesel price.

"The current level of international product prices of petrol and diesel and Indian Rupee-US Dollar exchange rate warrant decrease in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision," the statement said.