Two oil companies have said they will reduce petrol prices when the levy supporting the Irish National Petroleum Corporation (INPC) is removed.

Maxol and Texaco said they would pass the removal of the levy, amounting to 0.4p per litre, on to customers. Statoil and Esso both said the situation regarding the sale of the INPC and the removal of the levy would have to be assessed before a decision was made on the reduction of petrol prices.

"It is too early to speculate what exact impact the removal of the levy will have until such time as the new owners are in place," a spokeswoman for Statoil said. A spokeswoman for Esso said other factors, such as the euro exchange rate and the price of crude and refined oil, would have to be assessed before a decision was made.

Customers pay a total of £14.5 million (#18.4 million) every year towards the INPC through petrol prices. A further levy amounting to 0.3p per litre will remain, which goes towards the National Oil Reserves Agency (NORA) one of the INPC's three subsidiaries and the only element not on offer as part of the sale.

Mr Conor Faughnan, spokesman for the Automobile Association, welcomed the levy removal.