The UPA Government has announced that it plans to trim down petrol and diesel prices further in the coming 2-3 weeks and also hinted at cutting down cooking gas prices between Rs 20-25 a cylinder.

Petroleum Minister Murli Deora did not divulge the time frame and extent of reduction in the fuel prices. "The price cut is under active consideration. In two to three weeks, a decision will be taken," Mr. Deora said.

On December 5, 2008 the government had announced Rs 5 per litre and Rs 2 a litre decrease in petrol and diesel prices, respectively, as worldwide crude prices hovered around four year lows.

Analysts said that low inflation may fuel further reduction in central bank interest rates to facilitate India's $1 trillion economy, which is expected to rise about 7% in 2008/09, slackening from a blistering 9% in each of the previous three fiscals.

According to sources, the government has delayed the price cut for petrol, diesel, cooking gas to offer relief to major PSU refiners.