NEW DELHI: The Centre on Thursday announced a cut of Rs 2.50 per litre on petrol and diesel prices with immediate effect.
Addressing a press conference, finance minister Arun Jaitley said the Union government is effecting a Rs 1.50 cut on excise duty on petrol and diesel.
“Marginal relief for citizens with an oil duty cut of Rs. 1.50 and another Re 1 drop in what the government charges from oil marketing firms. The Rs. 2.50 benefit for citizens is within the control of the government and oil marketing companies,” the finance minister said.
"I am sure the states will also start delivering immediately," he added.
Under Jaitley's three-point plan, the cut in petrol and diesel prices may even extend to Rs 5 per litre.
The first aspect of this plan involves the Centre. The Centre is cutting the excise duty it charges on petrol and diesel by Rs 1.5 per litre.
The second aspect of the plan deals with Oil Marketing Companies (OMCs) who will simultaneously take a Rs 1 per litre hit on their revenue.
The third part of the plan involves the various state governments.
Jaitley said that he will write to the different state governments asking them to reciprocate and reduce their taxes by a similar Rs 2.5 per litre.
Jaitley made this announcement at a surprise press conference in New Delhi.
Image credit: The Economic Times