Commerce Minister Piyush Goyal on Wednesday hailed Prime Minister Narendra Modi for the decision to reduce excise duty on petrol and diesel and said that the move will benefit common people, further boost consumption and spur our economy.

"Big reason to cheer ahead of Diwali! I thank PM @NarendraModi ji for the decision to reduce Excise Duty on Petrol & Diesel by Rs5 & Rs10 respectively. The move will benefit common people, further boost consumption & spur our economy," Goyal tweeted.

In a significant decision, the Centre on Wednesday reduced excise duty on petrol and diesel to bring down the prices of the two petroleum products which had been seeing an upward trend. The relief to consumers came on the eve of Diwali. The Finance Ministry said that excise duty on petrol will come down by Rs 5 and that on diesel by Rs 10 and it will be effective from Thursday.

It urged the states "to commensurately reduce" VAT on petrol and diesel to give relief to consumers.

(With inputs from ANI)