Finance minister Arun Jaitley said on Thursday that the excise duty on petrol and diesel will be cut by Rs 2.50 per litre.
The Economic Times reported that while the centre would cut Rs 1.50 in excise duty on fuel, oil marketing companies would absorb the additional Re. 1 cut.
The government has been facing criticism over its handling of the economy. Petrol and diesel prices have skyrocketed across the country over the past month, while the rupee hit another record low earlier on Thursday.