New Year Gift by Modi government, Non-subsidised LPG cylinder price down by Rs 120.50, Rs 5.91 cut for subsidised!

Last year there were many complaints about the Modi government not cutting the prices of the gas and fuel which had caused certain amount of unrest among the masses.

But as a gift to the New year, the Modi government has cut down the prices of LPG cylinders greatly. The cabinet decided to cut the prices of non-subsidized cylinders by Rs 120.50 and subsidized cylinders by Rs 5.91.  With effect from midnight, a 14.2-kg subsidised LPG cylinder will cost Rs 494.99 in the national capital from midnight in comparison to Rs 500.90 currently, said the largest oil PSU.

This is the second straight subsidised reduction in LPG rate after it was earlier reduced by Rs 6.52 per cylinder. The earlier price cut had come after six consecutive monthly hikes in rates since June.

As per tax rules, GST on LPG has to be calculated at the market rate of the fuel. The government may choose to subsidise a part of the price but tax will have to be paid at market rates. TOI
Subsidised cooking gas consumers will get Rs 194.01 per cylinder subsidy in their bank accounts for the month of January.The subsidy transfer in the customer’s bank account has been reduced from Rs 433.66 in November and Rs 308.60 in December.

All LPG consumers have to buy the fuel at market price. The government, however, subsidises 12 cylinders of 14.2-kg each per households in a year by providing the subsidy amount directly in bank accounts of users.
This subsidy amount varies from month to month depending on the changes in the average international benchmark LPG rate and foreign exchange rate. Business Today.

The government said that the fall in the international prices of the LPG was the reason the government decided to transfer the benefits directly to customers. The strengthening of the rupee against the dollar was also one of the reasons for the cut in LPG prices said the government.

Power Punch



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