Union Petroleum Minister Ram Naik hinted on Wednesday that the prices of petrol and diesel may be cut on April 15 so that they are in step with the fall in international oil prices.
"After the outbreak of war in Iraq, crude prices have fallen substantially. Oil companies will take into account these changes and I am sure they will make consumers happy," Naik told reporters in New Delhi.
He, however, did not specify the extent of price reduction.
From a three-month high of $34.73 a barrel prior to the war, crude prices have fallen to less than $24 a barrel.
"Though the decline started immediately after the war started on March 20, the oil companies did not revise the price of petrol and diesel on April 1 as the situation was still volatile," he said adding prices have not stabilised and the fall in prices would be passed on to the consumers.
Petrol prices have risen by over 26 per cent during 2002-03, from Rs 26.54 a litre (in Delhi) on April 1, 2002 to Rs 33.49 per litre currently.
Diesel prices have gone up by around 33 per cent to Rs 22.12 per litre at present as opposed to Rs 16.59 a litre on April 1, 2002.
Naik said the Indian basket of crude had averaged $27 a barrel in the second fortnight of March and in the subsequent fortnight it fell to $25.09 per barrel, necessitating a reduction.