Petrol price cut took effect after the Finance Ministry issued a late night notification announcing new fuel rates.
Petrol now costs Rs264.61 per litre, down Rs7.54, while high speed diesel goes up Rs1.48 to Rs285.83 per litre.
The adjustment follows the fortnightly review of international oil prices and domestic tax targets.
Officials said the revision balances relief at the pump with revenue needs amid a volatile crude market.
Petrol price cut: mixed change, what drivers should know
The drop in petrol ends a streak of steady or rising prices over recent cycles, offering car and motorcycle owners immediate savings.
Transporters who rely on diesel will feel a smaller hit from the Rs1.48 hike, but the change still affects freight costs and intercity fares.
Petrol stations have switched to the new rates, and the Oil and Gas Regulatory Authority will monitor compliance.
Consumers should see updated price boards and corrected invoices from today.
Analysts attribute the petrol cut to lower global quotes over the past two weeks and a stable rupee, which reduced the landed cost of motor spirit.
Diesel, however, tracks a different product benchmark and faces tighter regional supply, explaining the uptick despite the softer crude environment.
With monsoon season under way, the government said it will watch global trends closely before the next review.
Continued declines in international prices and a steady exchange rate could translate into further relief, but any rebound in crude or currency slippage may reverse the trend.
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