The government is likely to cut petrol price by Rs 5 a litre and diesel by Rs 3 per litre after Assembly elections in six states are completed on December 24.

"Crude has fallen from all-time high of $147 per barrel to around $50 now. Naturally, there are expectations that petrol and diesel prices should be reduced and we will do that," Petroleum Minister Murli Deora told reporters in New Delhi.

The prices would be cut before December-end.

The government had in June raised petrol price by Rs 5 a litre, diesel by Rs 3 per litre and domestic LPG by Rs 50 per cylinder as crude oil prices had climbed to record highs. The hike is now expected to be rolled back.

"We have to reduce prices but it will happen after assembly elections," he said.

As a result of fall in the international oil prices, state-run Indian Oil [Get Quote], Bharat Petroleum and Hindustan Petroleum started making profit on sale of petrol from November 1 and on diesel from November 15.

Petroleum Secretary RS Pandey said though margins on petrol and diesel had turned positive, the companies were still losing money on domestic LPG and kerosene.

The three firms lose Rs 22.40 a litre on kerosene and Rs 343.49 per LPG cylinder, which together work out to Rs 80 crore (Rs 800 million) per day.

Pandey said the Cabinet Committee on Economic Affairs would be informed of the factual position and directions sought.

The three companies suffered a net loss of over Rs 14,000 crore (Rs 140 billion) in the first-half of the current fiscal and ways and means of making it up were to be worked on, he said.

"As per our calculations, the oil companies will end the fiscal with a revenue loss on fuel sales of Rs 110,000 crore (Rs 1,100 billion).

How to make up for this will also have to be decided by the CCEA," he added.