The Centre on Wednesday, on the eve of Diwali, announced a reduction in excise duty on petrol and diesel. Excise duty on petrol and diesel will be reduced by Rs 5 and Rs 10 respectively from tomorrow, news agency ANI reported.

"The reduction in excise duty on diesel will be double that of petrol and will come as a boost to the farmers during the upcoming Rabi season," a government source told ANI.

The source added the states have been urged to reduce VAT on petrol and diesel to give relief to consumers.

Besdies, the Finance Ministry said the decision was taken to "give a further fillip to the economy".

"To give a further fillip to the economy, Govt of India has decided to significantly reduce excise duty on diesel & petrol. The reduction will also boost consumption & keep inflation low, thus helping the poor & middle classes," the ministry said.

Petrol and diesel prices remained constant today after constantly rising for seven consecutive days.

In Delhi, petrol and diesel have been priced at Rs 110.04 and Rs 98.42 per litre respectively. Petrol and diesel cost Rs Rs 115.85 and Rs 106.62 per litre in Mumbai, Rs 110.49 and Rs 101.56 per litre in Kolkata and Rs 106.66 and Rs 102.59 per litre in Chennai respectively.

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Petrol, diesel prices remain unchanged after seven consecutive days of hike - Check fuel rates here