Sources said the revision in rates of petrol and diesel are likely to be announced as early as Friday.
The cut in petrol price will follow two rounds of hike in rates since February. Petrol price was hiked by Rs. 1.50 a litre on February 16 and then by Rs. 1.40 per litre from March 2. Both the increases were excluding local VAT.
Petrol in Delhi currently costs Rs. 70.74 a litre.
Since last revision, international gasoline (petrol) prices have come down to about $120 per barrel from $131.00 a barrel at the last time last revision. Also, the rupee has marginally appreciated against the US dollar to Rs. 54.11.
Diesel prices have been since January hiked by over Re one per litre in two instalments and it currently costs Rs. 48.16 a litre. Despite the increases, oil firms lose Rs. 11.26 per litre on sale of the nation's most consumed fuel.