Apparently, according to Reuters, India’s Petroleum Minister Mani Shankar Aiyar and Finance Minister Palaniappan Chidambaram have met Prime Minister Manmohan Singh to review the oil price situation and its impact on the country’s economy; a move which led to India’s state-run refining and retailing companies deferring from plans to raise petrol and diesel prices in anticipation of a tax cut.

According to the source, “India has a surplus of refined products, but the local price of petrol and diesel is linked to the landed price of imports. Lower customs duties would make them cheaper.”

“We expect an announcement from the government in the next one or two days. Customs and excise duties are likely to be cut [and] the government [is] likely to reduce customs duties on cooking gas, kerosene, petrol and diesel, and also slash the excise duty on the same products except cooking gas,” added the insider.