Reliance Industries, India's largest private fuel retailer, may cut petrol and diesel prices by about Re one per litre on Thursday in step with a fall in international oil prices.
Reliance, which had on October 1 cut petrol and diesel prices by Re 1 per litre, has hinted to its dealers about a likely cut from Thursday, industry sources said.
Company officials when contacted, however, declined to comment.
The news of an imminent cut in the prices led to Reliance petrol pumps owners virtually stopping fuel sales.
Even after tomorrow's cut, fuel sold by Reliance would be about Rs 0.50 a litre costlier than their public sector competition.
Reliance operates about 1,270 petrol pumps in the country.
Industry sources said the fall in international oil prices during the last four weeks has seen considerable improvement in margins on petrol and diesel.
Oil firms were making Rs 2.94 per litre profit selling petrol and were almost breaking even on diesel sales.
Public sector retailers - Indian Oil Corp, Bharat Petroleum Corp and Hindsutan Petroleum Corp who had last raised petrol and diesel price by Rs 4 and Rs 2 a litre respectively on June 5, have till now not decided about passing on the fall in international oil prices to the consumers.
Sources said the public sector retailers were making huge losses on domestic LPG and kerosene sale and were unlikely to cut prices till the Indian basket of crude falls to around $52 a barrel.
The Indian basket of crude averaged just over $57 a barrel in October.