Master Stroke: Centre cuts fuel prices by Rs 2.50/litre, some states follow suit

Under attack from rivals and with Assembly elections round the corner, the Centre on Thursday cut petrol and diesel prices by Rs 2.50 per litre, a decision that was followed by several BJP-ruled states, giving an overall relief of Rs 5 per litre to the consumer.

The Centre's decision will result in a revenue loss of Rs 10,500 crore in six months, Finance Minister Arun Jaitley said while announcing the much sought-after relief and asking states to effect a similar cut.

He told a press conference that the cut will be effected through slashing of excise duty to the tune of Rs 1.50 per litre while the oil marketing companies (OMCs) will absorb the impact to the tune of Re one.