The prices of petrol and diesel could be down by as much as Rs 2.50 a litre on Friday.
Falling prices of crude oil have driven down the cost of products, prompting oil marketing companies to contemplate reducing the prices.
This will be the sixth consecutive price cut for petrol since August.
Diesel prices will be cut for the first time since these were decontrolled on October 18, leading to a drop of Rs 3.27 a litre.
Petrol is currently Rs 66.65 a litre in Delhi and Rs 74.46
a litre in Mumbai.
Prices have come down by eight per cent from Rs 72.51 a litre in the beginning of August.
Before October 18, diesel rates were previously cut in 2009, when they were reduced by Rs 2 a litre to Rs 30.86.
The latest price cut will come ahead of the Assembly elections in Jharkhand and Jammu and Kashmir, beginning November 25.
However, the price cut might not violate the election code of conduct as both the automobile fuels are now deregulated.
State oil marketing firms review retail prices of the two petroleum products every fortnight.
