Petrol and diesel prices were increased marginally on Thursday.
The government on Thursday announced a reduction of Rs 2.5 per litre in prices of petrol and diesel, granting some relief to the common man from the surging fuel prices.
The Centre reduced the excise duty by Rs 1.5 per litre on petrol and diesel.
Along with this, Re 1 per litre will be absorbed by state-run oil marketing companies, said Finance Minister Arun Jaitley.
This will effectively lead to a cut of Rs 2.5 per litre in prices of petrol and diesel for the consumer, the finance minister said in a press conference.
Here are 10 things to know about reduction in petrol, diesel prices:The move to bring down domestic fuel prices came amid international crude oil rates soaring to 2014 highs in the past few days.Petrol and diesel prices were increased marginally on Thursday.
The fuel rates in many parts of the country are at their all-time highs at present.Petrol prices on Thursday touched Rs 84 per litre in Delhi, Rs 91.34 per litre in Mumbai, Rs 85.80 per litre in Kolkata and Rs 87.33 per litre in Chennai.
Diesel prices stood at Rs 75.45 per litre, Rs 80.10 per litre, Rs 77.30 per litre and Rs 79.79 per litre, in Delhi, Mumbai, Kolkata, and Chennai, respectively.Mr Jaitley said the domestic economic indicators are "strong and stable".
Barring the current account deficit, other data is encouraging, he said.He also said fuel prices can be reduced by Rs 5 per litre if states cooperate, urging the state governments to start reducing taxes immediately."Crude prices have crossed $86 (a barrel) Interest rates have risen in America These developments have made a significant impact in both markets and the rupee," Mr Jaitley said.Taxes on petrol and diesel, which account for more than a third of retail fuel prices, are one of the biggest sources of income for the government.High crude oil prices along with rupee depreciation have made oil imports costlier, leading to a widening pressure on the current account deficit.Oil marketing companies such as Indian Oil Corporation have been rapidly increasing petrol and diesel prices for the past few weeks.The rupee touched a new all-time low of 73.77 against the dollar on Thursday.(With agency inputs)