With effect from September 1, the government has exempted imports of LPG, liquified propane, and liquified butane from the 15% agri cess. A 15% agricultural cess was levied by the government on importation of several products in July.
As of September 1, imports of LPG, liquified propane, and liquified butane are completely free from the Agriculture Infrastructure Development Cess (AIDC), according to a statement from the Finance Ministry.
The state-owned oil firms would be able to sustain the Rs 200 per cylinder decrease in cooking gas LPG prices thanks to the robust revenues in the first five months of the current fiscal year and the worldwide benchmark falling off its highs, sources said, hinting there may not be any government compensation for that.
The government reduced the cost of domestic cooking gas by Rs 200 per cylinder on Tuesday in an effort to mitigate the effects of growing inflation on consumers and to offset the Congress party’s pledge to offer cheaper LPG during approaching assembly elections.
As a consequence, the cost of a 14.2 kg LPG cylinder in the nation’s capital was reduced from Rs 1,103 to Rs 903. After taking into account the ongoing subsidy of Rs 200 per cylinder, the price for Ujjwala recipients will be Rs 703.
The April-June quarter saw record earnings for state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), according to government and commercial sources.
Saudi CP, the benchmark for local LPG prices due to the country’s significant imports, decreased from USD 732 per tonne in March 2023 to USD 385 in July. Rates increased in August to USD 464 per tonne, but they still give oil firms room to decrease LPG costs, they claimed.
As of September 1, the government has completely exempted imports of LPG, liquified propane, and liquified butane from the 15% agri cess. This comes after a 15% agricultural levy on imports of certain products in July. As of September 1, the Finance Ministry announced an exemption from the Agriculture Infrastructure Development Cess (AIDC). State-owned oil businesses should be able to withstand the Rs 200 per cylinder reduction in cooking gas LPG pricing thanks to the robust revenues in the first five months of the current fiscal year and worldwide benchmark. This might not be the government’s cutback compensation. The trend is anticipated to continue as state-owned Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd reported record earnings in the April–June period. Due to a strong reliance on imports, Saudi CP, the price to which local LPG prices are benchmarked, decreased from USD 732 per tonne in March 2023 to USD 385 in July.