Rs140 duty relief on LPG cylinders above the cap limit

The government has decided to forgo customs and excise duties on LPG for cylinders that consumers buy above the 6-cylinder-a-year cap, giving some respite to harassed households.

This means the consumer would be saving Rs140 on LPG cylinders above the prescribed quota of 6, the price of which works out to Rs895 per 14.2 kg cylinder.

The 7th LPG cylinder would now cost Rs755 for the domestic consumer instead of Rs895 and, if state governments oblige, a little more cheaper.

After deducting the 5 per cent customs duty and 8 per cent excise duty a 14.2 kg LPG cylinder in Delhi would cost the consumer around Rs798.

Subsidised LPG in Delhi is currently sold at Rs399 a cylinder.

Announcing the relief, finance minister P Chidambaram also advised the state governments to suitably subsidise the requirements of households at their level.