Arun Jaitley
Union Finance Minister, Arun Jaitley.Reuters

Union Finance Minister Arun Jaitley on Thursday announced that there would be a Rs 2.50 cut in fuel prices and has asked state governments to match the price cut. 

He made this announcement while addressing a press conference.

Jaitley has also said that there would be a price cut of Rs 1.50 on Excise Duty of fuel and state-run oil marketing companies (OMCs) will absorb Re 1 cut.

Jaitley added that Brent Oil crossed $86/bbl, the highest in the last four years, on Wednesday. The interest rates in the US have also risen to 3.2 percent, the highest in seven years.