New Delhi: The Union government on Thursday announced a cut of Rs 2.50 per litre on petrol and diesel prices with immediate effect.
To achieve this, excise duty has been reduced by Rs 1.50 per litre and oil marketing companies have been asked to absorb another Re 1.
While addressing the media, Union Finance Minister Arun Jaitely said the excise duty cut would have an impact of Rs 10,500 crore on the central government’s tax revenues.
“We are taking a number of steps to curb prices,” he said.
World crude oil prices are at an all time high, reaching up to USD 86 a barrel and interest rates in the US reaching seven-year high, he added.
He also asked the state governments to reduce the prices by a further Rs 2.50 by cutting sales tax or value added tax.
Fuel prices had touched Rs 82 in Odisha and Rs 90 in Mumbai.