The Centre reduce prices of fuel by 2.5 rupees and ordered states to cut VAT rates.
This step was taken to give the citizens a relief from the constant rise in fuel prices.
Maharashtra announced 3.2 rupee cut in petrol price and after adding other reduced prices, Mumbai's petrol price is now at 85.73 rupees.
The government has lowered central excise from petrol and diesel by 1.50 rupees.
State government will face 2,500 crore loss but it won't affect the budget.