The fuel prices were cut a day after centre's announcement. (Representational)
Union Territory Chandigarh on Friday announced a Rs 1.50 per litre cut in petrol and diesel prices, effective from Friday midnight.
Fuel prices have already come down by Rs 2.5 per litre after the centre reduced the excise duty by Rs 1.5 per litre and directed oil companies to absorb a cut of Re 1 per litre.
The Chandigarh administration has reduced the value added tax (VAT) on petrol and diesel, an official release said in Chandigarh.
"The sale price of petrol and diesel will come down by Rs 1.50 per litre. As the Government of India has already reduced the rate on petrol and diesel of Rs 2.50 per litre, thus the total benefit to the consumers (in Chandigarh) will be Rs 4 per litre on petrol and diesel," it said.
The BJP-led government in Haryana Thursday announced a Rs 2.50 per litre cut in petrol and diesel prices, while the Punjab government has called a meeting on Monday to decide on the issue.
The central government had cut petrol and diesel prices by Rs 2.50 per litre, factoring in excise duty reduction of Rs 1.50 per litre and asking oil companies to absorb a rupee per litre.
Finance Minister Arun Jaitley had also asked the state governments to follow suit by cutting a sales tax or VAT by a similar amount. The reduction followed petrol and diesel prices touching new highs.