Finance Minister Arun Jaitley on Thursday announced the government's decision to slash prices of petrol and diesel by Rs 2.5. "Last year when fuel prices were rising, we cut Rs 2 from the excise duty in October from the central government’s side. State governments allied with BJP subsequently also cut prices. This situation arose due to global crude oil prices and I have maintained that if our domestic revenue parameters are strong, then we have the power to cut prices. During an inter-ministerial meeting we decided and proposed to the PM that the revenue department, which provides relief to customers, will be divided. Excise duty will be reduced by Rs 1.5 and the OMCs will factor in Rs 1 cutback in their prices. So the central government will immediately give Rs 2.5 relief on petrol and diesel to the consumers. "