Domestic Cooking Gas (LPG) prices were cut by Rs 6.52 per cylinder on account of tax impact on the reduced market rate for the fuel. A standard 14.2 kg subsidised cylinder will now cost Rs 500.90 against the previous Rs 507.42 in the National Capital Region (NCR), as the Indian Oil Corp (IOC), said in a statement.
The non-subsidised rates have been cut steeply by Rs 133 per cylinder in order to reflect fall in international oil rates and strengthening of the rupee. It is mandatory for the LPG consumers to buy the fuel at market price. However, the Government subsidises 12 cylinders of 14.2-kg each per households in a year as reported by Free Press Journal.
“Accordingly, the upfront cash payment by the consumer for the purchase of domestic LPG refill will reduce by Rs 133 cylinder, i.e. from Rs 942.50 per cylinder to Rs 809.50 cylinder in December 2018 in Delhi market,” IOC said.
A higher subsidy is provided when the international rates move up, and subsidy is cut when the rates come down. GST on LPG, as per rules, has to be calculated at the market rate of the fuel.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.