New Delhi: In a major relief to consumers, petrol and diesel prices were reduced by Rs 2.5 a litre each, the Government announced on Thursday.
Of the reduced prices, the Government has cut the excise duty of Rs 1.5 on petrol and diesel while the oil marketing companies under the government pressure will absorb Rs 1 a litre, Union Finance Minister Arun Jaitley told a press conference here.Mr Jaitley said the new prices would come into force with immediate effect.
The Minister said he would also asked state governments to reduce VAT on petrol and diesel by Rs 2.5 a litre.
"Fuel prices can be reduced by Rs 5 per litre if states cooperate, let states decide," he added.
Mr Jaitley said with this decision, Rs 10,500 crore will be the impact on excise duty cut this year.(UNI)