Mumbai, October 4: Finance Minister Arun Jaitley on Thursday cut petrol and diesel prices by Rs 2.50 per litre with immediate effect, providing some relief from rising fuel prices. He said that while the Centre has cut excise duty on petrol and diesel by Rs 1.50 per litre, the Oil Marketing Companies (OMCs) will further reduce prices by Re 1 per litre. He said that Rs 10,500 crore will be the impact of the excise duty cut this year. Narendra Modi Holds Meeting With Amit Shah, Ministers, Expresses Concerns Over Rising Prices of Petrol And Diesel.

However, fuel will cost Rs 5 per litre lesser with immediate in six states - Uttar Pradesh, Gujarat, Maharashtra, Chhattisgarh, Tripura and Assam - where state governments have further cut VAT by Rs 2.50 per litre. It is to be noted that the Maharashtra government has reduced the price of petrol only and not diesel.

This came after Jaitley asked states to further cut prices on their level by Rs 2.50 per litre so that consumers can get a relief amounting to Rs 5 per litre. He added that the last time that the Centre asked states to provide relief to the common man "only BJP or NDA allies-led states" did that.

Speaking on the reason for price cut, the Finance Minister said that there has been a significant impact of higher interest rates in the US and crude oil prices on rising fuel prices in the country. "The government has cut down borrowing this year by Rs 70,000 crore. India's domestic indicators were consistent and encouraging," the Finance Minister said. "Several macroeconomic data is indicating stable measures. The first quarterly results have shown 8.2 per cent growth. Inflation is still moderate less than 4 per cent," Jaitley added. Petrol Price Hits Rs 84 in Delhi, Diesel Costs Rs 80 in Mumbai as Fuel Rates Continue to Soar.

Prime Minister Narendra Modi on Thursday held a meeting with his ministers over rising prices of petrol and diesel in the country. Bharatiya Janata Party (BJP) president Amit Shah was also present. PM Modi expressed concerns over rising fuel prices in the season of Rabi crops. PM Modi consulted Union Finance Minister Arun Jaitley and Oil Minister Dharmendra Pradhan.

Petrol prices have been rising for more than a month now and have reached fresh record highs across the country. On Thursday, October 4, the price of petrol hit the Rs 84 per litre mark in Delhi while diesel cost went Rs 80 per litre in Mumbai.

This is the second time in one year that the Centre has cut excise duty on petrol and diesel as rising prices pinch the common man.

(The above story first appeared on LatestLY on Oct 04, 2018 03:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).