Due to the decrease in domestic cooking gas (LPG) prices, the common people have received great relief. LPG prices have decreased by Rs 6.52 per cylinder on Friday, due to the reduction in fuel prices in the international market. However, the cost of LPG cylinders without subsidy reduced by Rs 133. According to the Indian Oil Corporation, the country's largest fuel retailer, will now have to pay 500.90 in the NCR (National Capital Region) for the 14.2 kg weight cylinder found in the subsidy. Explain that for this the first consumer had to pay the first Rs 507.42. New prices have come into effect from today. This reduction in LPG prices has been recorded after six consecutive months since June. Prior to this fall, prices of cylinders rose by Rs 14.13 per cylinder till prices were seen.
The price of LPG cylinders found in subsidy was last seen on November 1. During this period, Rs 2.94 per cylinder was raised. In which the price of subsidized LPG cylinder increased from Rs 502.40 to Rs 505.34 per cylinder. Explain that LPG consumers have to buy LPG cylinders at market value. However, the government directly imposes subsidy on the customers' bank account at 12 cylinders of 14.2 kg in a year. It may be mentioned that in the last six weeks, the price of petrol has been cut by 9.6 rupees and diesel has been cut by 7.56 liters. According to the average international benchmark rate of LPG and the foreign currency exchange rate, the prices of LPG cylinders are fixed. On the basis of which the subsidy amount changes every month. In such a situation, when international prices rise, the government gives more subsidy and when the prices are low, subsidies are cut.
According to the tax rules, GST on LPG is determined only on the basis of market price of fuel. In such a situation, the government can give a portion of fuel price as a subsidy, but tax is to be paid at the market rate. Due to this, due to the fall in the price of LPG without market subsidy, the reduction in the impact of tax calculation on subsidized LPG has reduced the price. The company said that in Delhi in December 2018, the price of non-subsidized cylinders dropped from Rs 942.50 to Rs 809.50. There is a reduction of 133 rupees.