The Centre has reduced the central excise duty levied on fuel (petrol and diesel) by Rs 1.50. Besides this relief, the consumers will also stand to benefit from the oil marketing companies' decision to cut their prices by Re 1. So, effectively, it will be a cut of Rs 2.50.

"We are writing to the state governments that as the central govt is cutting Rs 2.50 on both petrol and diesel, they do the same. Rs 10,500 Crore will be the impact of excise duty cut this year," Finance Minister Arun Jaitley today said.

Following this decision, some state governments have announced a relief of about Rs 2.50 on fuel prices. "The Maharashtra govt has also decided to give additional relief of Rs 2.5/litre on Petrol to give total benefit of Rs 5/litre in the State," CM Devendra Fadnavis said. A similar decision has been taken by Gujarat, Chattisgarh, Assam and Tripura.

The Rs 5 cut will benefit millions in the country.