The decision to cut fuel prices on Thursday was taken after high - level consultations involving Prime Minister Narendra Modi, BJP President Amit Shah and three of the senior cabinet ministers including Finance Minister Arun Jaitley.
Informed sources said the Prime Minister discussed the issue with Shah and Jaitley beside Petroleum Minister Dharmendra Pradhan and Railways Minister Piyush Goyal ahead of the Wednesday's cabinet meeting.
This was followed by another round of discussions with Jaitley, Pradhan and Goyal after the cabinet meeting.
Hailing the government's decision to cut petrol and diesel prices by Rs 2. 50 per litre, BJP President Amit Shah said the decision shows the government's sensitivity towards people's welfare.
"The central government has taken another decision in the interest of the people so that they can get relief.
We welcome this decision and thank Prime Minister Narendra Modi on behalf of the people and BJP workers.
By taking such a decision the Prime Minister has shown the sensitiveness of the government towards people, " he told reporters.
Bharatiya Janata Party (BJP) spokesperson Sambit Patra said that the people will get a total relief of Rs 5 at the earliest as the Centre has asked states to effect an equal amount of tax cut in the oil prices.
With assembly elections due shortly in Madhya Pradesh, Rajasthan and Chhattisgarh, where the BJP has high stakes, the decision assumes significance, coming as it does a day after the Union Cabinet hiked the minimum support price for rabi crops.