Petrol cheaper by Rs 2, diesel Re 1

 When pointed out that rise in inflation is due to primary articles, not petroleum prices, Chidambaram said: " it is not necessarily true. Supply constraint has caused to the rise in prices of pulses, milk, fruits and vegetables. This is more of seasonal. Any reduction in input cost like cut in petroleum prices should have moderating influence on inflation.

The Finance Ministry is also likely to make duty adjustments, possibly cut excise rates, and an announcement in this regard is expected later today.

The two key motor fuel prices were last reduced by an identical amount in November.