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.
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