Fuel association representative said on Sunday that the petrol and diesel rates in the capital Bhopal have fallen to Rs 108.63 and Rs 93.88 per liter.
Ajay Singh, president of the Madhya Pradesh Petrol Pump Owners Association, told PTI that this sudden announcement will cause losses to petrol pump owners as oil companies don't give tax relief on the existing stock.
He said that the Centre has brought down petrol rates by about Rs 9.5 per liter.
He said that petrol in Bhopal now costs Rs 108.63 per litre, compared to the rate of Rs 118.12 per litre on Saturday.
The diesel rate has fallen to 93.88 per litre on Sunday, from Rs 101.14 per litre the previous day, he said.
He added that there is a variation of up to Rs 3 in the rates in different parts of the state, depending on the transportation cost of fuel.
Madhya Pradesh Chief Minister Shivraj Singh Chouhan thanked Prime Minister Narendra Modi and said that the Centre's decision to reduce the excise duty on petrol and diesel will bring relief to people across the country.
Congress Rajya Sabha member Digvijaya Singh demanded that the central excise duty on petroleum products be brought down to the 2014 level.
The price of petrol should be reduced by 20 per liter and that of diesel by 26 per liter, he said.
Kamal Nath, the MP Congress Chief, demanded that the state government reduce the Value Added Tax on petroleum products to bring down the rates.
The Centre has cut the excise duty on petrol by a record Rs 8 per litre and diesel by Rs 6 per litre to give relief to consumers battered by high fuel prices that have pushed inflation to a multi-year high.
Announcing the duty cuts, the Union Finance Minister Nirmala Sitharaman said that the government would give 200 per cylinder subsidy to the Ujjwala Yojana beneficiaries for 12 cylinders a year to help alleviate some of the burden arising from the rising gas rates to record levels.