The Centre today decided to cut petrol and diesel prices in the country by Rs 2.50 per litre, thus bringing in some relief to common people who have been hit hard by soaring rise of fuel prices in recent times.

Finance Minister Arun Jaitley informed on the decision and said of the Rs 2.50 cut, the Centre will bear Rs 1.50 of the burden and oil marketing companies will take a hit of Re 1 per litre.

Jaitley appealed to the states to match the Centre's effort by reducing value-added tax or VAT by Rs. 2.50 so that the total benefit to citizens is at least Rs. 5.

Minutes after the announcement, BJP-ruled Gujarat and Maharashtra government immediately slashed prices of petrol and diesel by Rs 2.50 per litre, thus giving the citizens a total benefit of Rs 5 on a litre of each fuel.

Matching up with these two states. Assam government also decided to slash the prices with immediate effect. This was informed by Assam Finance Minister Himanata Biswa Sarma through a tweet.

Due to this cut on fuel excise duty, the Centre's revenue would decline by Rs 10,500 crore in 2018-19, Jaitley informed.