A month after cutting the price of liquefied petroleum gas cylinders by over rupees 100, state-run fuel retailers on Thursday affected another big price cut.
The price of non-subsidised LPG cooking gas will now be reduced by Rs 62.50 per 14.2 kg cylinder in New Delhi, and Rs 62 in Mumbai and Chennai.
Indian Oil said in a statement that simultaneously, the upfront cash payment by the consumers of domestic LPG will also reduce by Rs 62.50 per cylinder. Domestic LPG consumers will now be required to make upfront cash payment of Rs 574.50 only per 14.2 Kg cylinder in August 2019 in place of Rs 637 per cylinder for July 2019,”
A non-subsidised LPG cylinder now costs Rs 574.50 in Delhi, Rs 601 in Kolkata, Rupees 546.50 in Mumbai and Rs 590.50 in Chennai. But as per tax rules, GST on LPG has to be calculated at the market rate of the fuel.
The government may choose to subsidize a part of the price, but tax will have to be paid at market rates. This leads to an increase or decrease in the price of subsidised cylinders.