The central government today said it would reduce the excise duty on petrol and diesel by Rs 2 per litre.
The reduction in the duty, which will have a direct impact on the prices of petrol and diesel, will take effect from tomorrow.
In a series of tweets, the Finance Ministry said that the decision has been taken to protect the "interest of the common man" while saying that the decision to reduce the basic excise duty on petrol and diesel will cause loses to the exchequer.
"Revenue loss on a/c (account) of these reductions in excise duty is about Rs.26,000 crore in full year (and) Rs13,000 crore in remaining part of Current FY," the Arun Jaitley-headed Ministry of Finance tweeted.
The the ministry also claimed that the basic excise duty on petrol and diesel has been reduced in order to "cushion the impact of rising international prices of crude petroleum oil & petrol & diesel on their Retail Sale Prices."
Today's decision by the Centre to indirectly lower petrol and diesel prices comes after the Narendra Modi government came under a barrage of criticism for high fuel prices in India.
Fuel prices in India had been shooting upward ever since daily revision of rates was introduced seemingly at odds with global trends.
The government was criticised for levying high taxes on petrol and diesel and for not bringing them under the Goods and Services Tax regime. Critics argued that b...