PTI
 
New Delhi, Nov 29: Petrol and diesel prices may be reduced by Rs 2 and Rs 1 a litre respectively and a decision in this regard is likely to be announced in Parliament on Wednesday.

Acknowledging that Congress President Sonia Gandhi had desired a reduction in fuel prices, Petroleum Minister Murli Deora on Tuesday said he would meet Prime Minister Manmohan Singh this evening to decide on the matter.

"I am meeting the Prime Minister this evening. A decision will be taken after that... The decision would be announced in Parliament tomorrow (Wednesday)," Deora told reporters in New Delhi.

"Sonia Gandhi has given a suggestion on cutting prices in line with fall in international oil prices. The government will consider that," the Minister said.

Gandhi, while addressing the Congress Parliamentary Party meeting earlier in the day, had suggested that the government should pass on the benefit of lower international crude prices to the people.

The Left parties, Samajwadi Party and the opposition BJP too had demanded immediate reduction in fuel prices and also staged a brief walkout in the Lok Sabha on the issue on Tuesday.

While petrol is currently being sold at a profit of Rs 4.50 per litre, companies are incurring a loss of Rs 0.45 on sale of one litre of diesel, Petroleum Ministry sources said.

The Indian basket of crude oil stood at about $67 per barrel, when petrol and diesel prices were last raised in June 2006. Crude prices are now hovering in the range of $57-58 a barrel.

Meanwhile, Finance Minister P Chidambaram told reporters that he would talk to Deora to ascertain whether there would be a cut in fuel prices in the light of Gandhi's suggestion.