Auto fuel prices in these states are expected to go down by Rs 5 per litre.
Petrol and diesel rates are decided on a daily basis by oil-marketing companies on the basis of the rupee-dollar rate and global crude oil prices. Diesel prices in the city however saw an effective decline of 70 paise, falling to Rs 76.75 per litre.
PTI The government has made a decision to cut Rs 2.50 per litre on both petrol and diesel. Central excise duty on petrol and diesel was Rs 9.23 and 3.46 per litre respectively before 2014.
Congress chief spokesperson Randeep Surjewala claimed it was a "panic reaction" by the government after facing public ire and an "imminent defeat" for the BJP in upcoming assembly elections in five states, and said the step will bring little relief to the people as it is like "reducing death sentence to life imprisonment". Chandigarh has reduced the fuel prices by Rs 1.50.
The decision was announced by finance minister Arun Jaitley after he held a closed-door meeting with Prime Minister Narendra Modi and petroleum minister Dharmendra Pradhan.
Additionally, the union minister was generous enough to urge the state governments to follow the Center's footsteps and cut down the rates of petrol and diesel.
Jaitley, however, said asking oil companies to bear a part some burden is not going back on deregulation. BJP-ruled Gujarat, Tripura and Chhattisgarh governments have also announced a similar reduction in oil prices. So, a total of Rs.2.50 will be reduced on both diesel and petrol.
Kerala Finance Minister Thomas Isaac however, said his government would not cut fuel prices, News18 reported. However, the diesel rate in Mumbai was increased by only 7 paise on Saturday.
The recent reduction in Value-Added Tax and excise duty is due to elections in 5 states in November-December. At the same time, the prices of crude oil in the worldwide market was $108 per barrel but the prices of the crude oil dropped to $77 per barrel at the start of November and further reduced to $36 in March, 2016.