The new retail prices of petrol in Delhi will be 67.90 rupees a litre, about 0.8 percent lower than current 68.46 rupees a litre.
The partially convertible rupee closed at 52.64/65 per dollar, while Brent crude oil was trading at $111.26 a barrel at 1245 GMT.
"The trends in the international oil market and Rupee-Dollar exchange rate shall be closely monitored and the same shall be reflected in future price changes," IOC said in the statement.
India's three state-run fuel retailers - IOC, Bharat Petroleum Corp
India liberalised petrol prices in June 2010 but the government continues to unofficially dictate prices to refiners, who suffered revenue losses of 26 billion rupees in April-September
"Oil Marketing Companies have incurred a loss of 26 billion rupees approximately on sale of gasoline during April-September due to inability to change retail selling prices to the desired extent in line with market conditions," the statement said.