With global oil rates softening, state-owned oil companies may next week cut petrol price by about Rs 0.80 per litre which could be the first reduction since January 2009.

Global oil prices fell sharply on Friday and if rates sustain and the rupee does not depreciate any further, a reduction of Rs 0.60 a litre in petrol prices (excluding taxes) is possible, an official said.

New York's main contract, light sweet crude for delivery in December, retreated 23 cents to $97.55 per barrel. Brent North Sea crude for December delivery shed 61 cents to $113.10.

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State-owned oil firms, last week, hiked the petrol price by Rs 1.80 per litre, the fourth increase this year, as the rupee fell from 46.29 a dollar to Rs 49.40 a dollar.

Oil companies will consider average oil price in the first fortnight of November when they review retail prices on November 15.

"International rates of petrol have come down to about $115 per barrel (from $123 last month)," the official said.

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Earlier this week, IOC Chairman R S Butola had said, "Gasoline (petrol) prices have come down from $125 per barrel to $115 per barrel. But this has to sustain together with rupee stabalising against the US dollar."

If prices are reduced, it will be the first cut in 33 months.

Last week's price increase was second since September, triggering strong protests even from the ruling party and its allies.