Though the final announcement is yet to be made, sources within the Oil Ministry have stated that the slashing of the prices cannot essentially be termed a rollback and that it was the government who suggested a reduction in the fuel price.
With a high profile meeting scheduled to be held on Wednesday among the head of all the major oil companies, the issue still persists on the losses incurred by the companies. The sources also confirmed that the decision is a political decision and the real issue faced by oil companies needs to be addressed.
The move, if implemented will see the first reduction in petrol prices since Jun 2010 after petrol price was deregulated from government giving oil companies the full power to decide on the price.
With the Opposition and the UPA allies tearing into the UPA for the second price hike within a month, there was widespread agitation and the various political parties were determined to question the move when the Parliament begins its winter session from Nov 22. The latest price hike has been the fifth since Dec 2010.
The announcement for the slashing of petrol prices is likely to be made on Thursday, Nov 17.