"According to me the advisable reduction would be Rs 5 per litre for petrol, Rs 3 per litre for diesel and Rs 25 on LPG cylinder," he said when asked about the extent of reduction in prices.

Oil companies have minimised the losses on petrol and diesel, as crude oil prices have lowered to $40 per barrel from its peak of $147 a barrel in July last year.

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"From this quarter onwards, we expect the oil marketing companies to start making profits. But, if the crude oil price rises beyond $40 per barrel, then it (profit) will not happen," Deora added.

When asked about a reduction in kerosene prices, he said it is already available at the cheapest rate in India of Rs 9 per litre.

On December 6, the government had reduced prices of petrol and diesel by Rs five and Rs two per litre, respectively, as global crude prices hovered around four year low.