The government will on Wednesday make a formal announcement reducing the prices of petrol and diesel. Petrol is likely to be cheaper by Rs 2 per litre in the Capital, and diesel by Re 1.
The step follows demands for a rollback from Congress president Sonia Gandhi, the Left, Samajwadi Party and the BJP.
After meeting Prime Minister Manmohan Singh on Tuesday, Petroleum Minister Murli Deora said, "Any announcement will be made in Parliament."
Earlier in the day, at a meeting of the Congress Parliamentary Party (CPP), Sonia said she had discussed the possibility of lowering the prices with Singh. "He assured me that he would look into the matter… I am sure this is under active examination," she said.