Petroleum minister Murli Deora on Saturday announced that the government is likely to cut petrol rates up to Rs 5 per litre, and a reduction of Rs 3 a litre in diesel and Rs 25 per LPG cylinder prices in the coming days.

According to sources, Oil companies have minimized the losses on petrol and diesel, as crude oil rates have lowered to $40 per barrel from its peak of $147 a barrel in July previous year.

While commenting on the oil prices, Mr. Murli Deora stated, “From this quarter onwards, we expect the oil marketing companies to start making profits. But, if the crude oil price rises beyond 40 dollar per barrel, then it (profit) will not happen.”

The reports said that the kerosene prices will not be revised as it is already available at the cheapest rate in India at Rs 9 per litre.

On December 6, 2008, the Government had trim down prices of petrol and diesel by Rs 5 and Rs 2 per litre, respectively, as worldwide crude prices hovered around four year low.