Petrol prices may be cut by Rs 2 a litre from Wednesday as global oil rates have softened and the rupee has stabilised against the US dollar. The cut in prices would negate the Rs 1.80 per litre petrol price hike effected earlier this month. “Gasoline (petrol) averaged $115.8 per barrel in November, as against the $121 per barrel price taken at the time of the Rs 1.80 per litre hike in petrol price. Also, the rupee has averaged Rs 49.20 per US dollar, which is less than the October average,” a senior official in one of the three state-run oil marketing companies said.

“The reduction in oil price warrants a cut of Rs 1.86 per litre in the petrol price, excluding all taxes,” he said, adding that retail prices may go down by about Rs 2 per litre.