The cut includes a reduction in excise duty of 1.50 rupees per litre, which will reduce government revenue by 105 billion rupees, Jaitley said. The states where the prices have been decreased are Gujarat, Chhattisgarh, Tripura, Jharkhand, Uttar Pradesh, Madhya Pradesh, Maharashtra, Himachal Pradesh, Haryana, Assam, Arunachal Pradesh, Uttarakhand, Jammu and Kashmir and Goa, said reports.
The state and and the Centre's decision collectively resulted in a drop in petrol prices by around Rs 4.37 per litre, against the promised Rs 5 per litre, from 6 AM on Friday in Maharashtra, which had been reeling under the highest fuel prices anywhere in the country.
The Centre on Thursday reduced fuel prices by Rs 2.50 per litre with immediate effect.
Opposition-ruled Bengal, Kerala and Karnataka, which had cut their Value-Added Tax rates on auto fuels by Re 1 to Rs 2 per litre last month, have said they will not cut rates again.
BJP chief Amit Shah said the decision showed the government's sensitivity towards welfare.
The petrol and diesel prices have resumed the ascending trend today. The move includes an excise duty cut of Rs 1.5 per litre by the Central government and oil marketing companies absorbing another Re 1 per litre. Oil marketing companies, simultaneously, will take a Re 1 per litre hit as well. This will reduce the overall price by about Rs 5.
Brent, the benchmark for more than half the world's oil, has touched Dollars 86 per barrel mark, the highest in four years.
Bihar Deputy Chief Minister Sushil Kumar Modi said his government has not received any letter from Jaitley on the matter, ANI reported. This means that petrol will continue to be expensive in Delhi. He also said he would write to all the states to cut their respective taxes. Absorbing this Rs 10,500 crore in increased collection and maintaining fiscal deficit I am confident we will be able to do that.