Prices of fuel products have been reduced by 10 percent, a statement by the National Petroleum Authority (NPA) has said.

The new prices take effect from tomorrow, Thursday January 1, 2015.

"...We therefore direct oil marketing companies to effect this change at all retail outlets.

"This decision takes a balance position of continues efforts to reduce outstanding under-recoveries and at the same time reflect fallen prices of petroleum products on the world market," the statement noted.

Petrol has witnessed a dramatic drop in price from $100 to $67 in December but the NPA had insisted it cannot reduce the price of fuel products due to its indebtedness to the oil distribution companies.

The Government had earlier resisted calls by several recognised bodies including, the Trades Union Congress for a downward review of prices of fuel products.