New Delhi Oct 4 (IANS) With unrelenting increase in fuel prices the government on Thursday decided to effect a cut in the prices of petrol and diesel by Rs 2.50 per litre.

Finance Minsiter Arun Jaitley announced at a press conference that the cut will be effected through slashing of excise duty to the tune of Rs 1.50 per litre while the oil marketing companies will absorb the impact to the tune of Re 1 per litre.

--IANS mak/vsc/in