New Delhi:Petrol prices may be cut by as much as Rs 1.50 per litre next week on falling international oil rates.

“Some burden has to be borne by consuming population. That is the challenge government faces. It is a political challenge, it is an economic challenge. It is a challenge we cannot run away from,” Oil Secretary Vivek Rae said speaking at an conference organised by Delhi Productivity Council here.

Rae said subsidy burden has reached unsustainable levels which cannot financed by government budget and oil companies.With limited financial resources, the government cannot run the risk of inflating the fiscal deficit further as it would lead to further depreciation in the rupee and downgrade in credit ratings, he said.

Officials said the softening in international oil rates and appreciating rupee will translate into a cut in petrol price on September 15/16.Rae too said that crude prices have come down after reduction in tension in Syria and rupee has also stabilised.