India cuts petrol, diesel prices by 2.5 rupees per litre - finance minister

NEW DELHI (Reuters) - India cut prices of petrol and diesel by 2.5 rupees per litre, finance minister Arun Jaitley said on Thursday, the latest in a series of measures to tackle a sharp hike in crude oil.

The move includes an excise duty cut of 1.5 rupees per litre, Jaitley said, with oil marketing companies absorbing 1 rupee per litre.

Taxes on petrol and diesel, which account for more than a third of retail fuel prices, are one of the biggest sources of income for the government, and a sensitive issue for voters.

Prime Minister Narendra Modi's ruling party is facing a tough election in three key states this year followed by a national election due by May.

 

(Reporting by Mayank Bhardwaj and Aditya Kalra, editing by Sudarshan Varadhan)