New Delhi:  Finance Minister Arun Jaitley yesterday announced that the CCentre hasdecided to effect a cumulative cut of Rs. 2.50 per litre on Petrol and Diesel, with the Centre absorbing Rs. 1.50 of this and oil marketing companies Re. 1.

All rate cuts have come into effect from last midnight.

Arun Jaitley has also asked all the States to match the Centre’s Rs. 2.50 cut with an equivalent reduction in their respective VAT rates on fuel, thus making the total benefit to consumers Rs. 5 per litre.

This is the first excise duty cut on Petrol and Diesel by the Centre since October last year.