Providing motorists a considerable relief, the government-run oil marketing companies (OMCs) on Monday slashed petrol price by Rs 3.05 a litre. It was first price cut in more than five months and the sharpest in more than five years.

However, owners of vehicles running on diesel will have to bear increased burden of fuel price as the price of diesel was hiked by 50 paise a litre.

The new prices, which took effect Monday midnight, will vary in different states due to different local sales tax or VAT. Following the reduction, petrol is now selling at Rs 72.40 a litre in Delhi, while Mumbai motorists are now paying Rs 79.49 a litre for the fuel.

In was the first reduction in petrol price since May. The last cut in petrol price was made on 1st of May this year.

The diesel price jumped by 57 paise to Rs 52.54 a litre in Delhi; while in Mumbai, it now costs Rs 59.46 as compared to previous price of Rs 58.86.

Government allowed oil marketing companies to hike prices of subsidized diesel in small doses every month to get over the soaring under-recoveries. Despite several increases in diesel price, oil marketing companies are still suffering a loss of more than Rs 14 a litre on the fuel.