The reduction in petrol prices is likely to be announced by the end of September as per the practice of fortnightly revision in prices, and has been made possible due to appreciation of rupee against the US dollar.
"This is a dynamic pricing system and not a static one. Any advantage of price (reduction in international rates) and rupee (appreciation against US dollar) will be passed on to consumers. Consumers will get full advantage," Veerappa Moily said.
Asked if a cut in petrol price was possible on September 30, he said he was "hoping so. Petrol price is a deregulated commodity, price of which is decided by our oil marketing companies based on input cost and other parameters," Veerappa Moily said.
If state-owned oil firms slash rates at month end, it will be the first reduction in prices since May. Petrol price was last cut on May 1 by Rs 3 per litre, the steepest reduction in rates in over five years.
However, since then petrol prices have been raised or gone up by seven times, totalling Rs 10.80 per litre, excluding VAT, as rupee depreciated sharply against the rupee. The price in Delhi has surged by Rs 13.06 per litre after including state tax, since June 1.
Last increase in petrol price was effected from September 14 when prices went up by Rs 1.63 per litre. Petrol costs Rs 76.06 per litre in Delhi.