LPG Price Cut: On the first of September, the central government and oil companies have given a big gift to the citizens of the country before the festival. There has been a big cut in the prices of commercial cylinders. Its prices have been cut by Rs 150 across the country. commercial in the last two months LPG The prices of cylinders have been reduced by about Rs.250. Earlier, on the 30th of August, the price of domestic gas cylinder was also reduced by Rs 200. Along with this, it has now been announced to give a subsidy of Rs 400 to the beneficiaries under the Ujjwala scheme. The reduction in the prices of commercial cylinders will be of great convenience to restaurant owners as well as sweet bakers.
Government exempts LPG import from agriculture cess
The government has removed 15 percent agricultural cess imposed on the import of LPG cylinders (LPG), liquefied propane and liquefied butane from Friday. The government had imposed 15 percent agricultural cess on the import of these goods in July. According to a notification issued by the Finance Ministry, the import of LPG, liquefied propane and liquefied butane has been completely exempted from Agricultural Infrastructure Development Cess (AIDC) with effect from September 1.
Commercial cylinder price in metros
The price of commercial cylinder in the capital Delhi was Rs 1680 till the month of August. Whereas, from this month the customers will now have to pay only Rs 1522.50. While the price of commercial cylinder in Kolkata was Rs 1680 last month, customers will have to pay Rs 1636 in September. The price of commercial cylinder in Mumbai has increased to Rs 1,482 which was Rs 1,640.50 last month. Whereas, there has been better relief in the price of commercial cylinders in Chennai. Last month its price was Rs 1852, which will be only Rs 1,695 this month.
Decision taken keeping elections in mind
Experts say that in the last one or two years, the prices of cooking gas have increased and it has become a major election issue. The Congress Party, realizing the impact of high LPG prices on people’s pockets, has raised this issue vigorously. This was raised prominently in the recently concluded assembly elections in Karnataka. The party has promised to provide LPG at the price of Rs 500 if it comes to power in Madhya Pradesh. In Rajasthan too, the Congress government is providing LPG at the same price. Elections are to be held in both the states in November-December. However, Thakur refused to link the decision with the elections, saying it was a gift from the Modi government to women on the occasion of Onam and Raksha Bandhan. He did not say how the price cut would be ‘compensated’. It is believed that public sector petroleum companies selling retail fuel will reduce prices from Wednesday. Later the government will compensate for it.
The cost will be Rs 7,680 crore in 2023-24
Describing the reduction in the prices of domestic LPG, Anurag Thakur said that under the Ujjwala scheme, LPG subsidy of Rs 200 per cylinder is being given to the customers, its cost will be Rs 7,680 crore in the current financial year 2023-24. Ujjwala beneficiaries are only 9.6 crore, while 33 crore consumers use LPG for cooking. The government had stopped giving subsidy on LPG in June 2020. The determination of the price of LPG across the country was market based. Due to this, the price of LPG cylinder in the national capital Delhi has become Rs 1,103, which will now be reduced by Rs 200. The only subsidy was being given to the beneficiaries of Ujjwala scheme. The government gives a subsidy of Rs 200 per cylinder on filling 12 cylinders in a year. If the government itself bears the burden of price cut of Rs 200 instead of passing it on to the retail petroleum companies, it means that the subsidy system has been brought back.