A Rs 2.50 per litre cut in diesel prices, the first in over four years, is likely after results of assembly polls in Maharashtra and Haryana are announced on Sunday.

Petrol price, which unlike diesel is a deregulated commodity, is likely to see a price reduction of about Re one a litre at the next scheduled revision due tomorrow.

"The government will take the right decision at the right time," Oil Minister Dharmendra Pradhan said when asked about the impending diesel price cut. Diesel, the nation's most consumed fuel that has a direct bearing on prices of essential commodities as it is the preferred fuel for the transport sector, is regulated or controlled by the government.

The fall in international oil rates last month led to situation where state-owned oil firms started making profit on diesel sales, the first time in history. However, the benefit could not be passed on to consumers as the model code of conduct had come into place with the announcement of elections to Maharashtra and Haryana assemblies.

Since reduction in rates would have been a new policy, a revision was deferred.