Finance Minister Arun Jaitley on Thursday announced a cut of Rs 1.50 in excise duty for petrol and diesel.
Jaitley said that the oil companies would further cut the fuel rates by Re 1, which means that petrol and diesel are set to get cheaper by Rs 2.50.
Addressing a press conference in New Delhi, Jaitley said, “The excise duty will be reduced by Rs 1.50 and Oil marketing companies (OMCs) will absorb Re 1. Thus, a total of Rs 2.50 will be reduced on both diesel and petrol.”
“We are appealing to the state governments that as the central government is cutting Rs 2.50 on both petrol and diesel, they also do the same,” Jaitley added.
The rate cut comes after PM Narendra Modi took up the issue of rising fuel prices with Finance Minister Arun Jaitley, who then discussed ways to lessen the burden on the common man.
The new rates will be applicable from midnight.