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LPG cylinder to cost only Rs 10 more

delhi Updated: Jun 05, 2008 22:36 IST

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An LPG cylinder in Delhi will be dearer by Rs 10 instead of Rs 50 as the city government on Thursday announced a subsidy and reduction in sales tax on the cooking gas though it gave no relief on petrol and diesel.

The new rate of LPG will be effective from tomorrow, Delhi Chief Minister Sheila Dikshit told reporters after a Cabinet meeting which discussed ways to ensure that Delhiites bear lesser burden of the fuel price hike announced by the central government yesterday.

Apparently wary of facing the people's fury in the Assembly polls slated five months later, the Delhi Cabinet decided to scrap the four per cent VAT and provide a subsidy of around Rs 26 per cylinder.

As a result, the increase in LPG rate will be Rs 10, including taxes, instead of Rs 50 in Delhi, Dikshit said, adding a cylinder, currently priced at Rs 294.70 paise, will now cost Rs 304.70 paise.

Going by the Rs 50 hike announced by the Centre, the price of an LPG cylinder would have been Rs 340.30 paise.

The subsidy would put a burden of Rs 165 crore on the state exchequer, she said.

Dikshit said the decision to give relief to Delhiites on LPG was taken keeping in mind her government's commitment towards Aam Adami (common man).

She said her government is discussing the modalities with the oil companies about how to go about the reduction.

The Delhi government, however, gave no relief on prices of petrol and diesel, citing affordability of users of these fuels.