Octroi levied on natural gas not LPG: Civic body | mumbai | Hindustan Times
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Octroi levied on natural gas not LPG: Civic body

The corporators demand for duty cut on LPG fell flat on its faces after it was revealed that the civic body did not charge any octroi on it. Instead, 3% octroi is charged on natural gas.

mumbai Updated: Jul 01, 2011 01:43 IST
Sujit Mahamulkar

The corporators demand for duty cut on LPG fell flat on its faces after it was revealed that the civic body did not charge any octroi on it. Instead, 3% octroi is charged on natural gas.

“We don’t charge octroi directly on LPG, but on natural gas. LPG and compressed natural gas (CNG) are the byproducts of natural gas,” said a senior civic official on condition of anonymity as he is not authorised to speak to the media.

During the civic standing committee meeting held at the civic headquarter on Wednesday, corporators from across party lines demanded that the Brihanmumbai Municipal Corporation (BMC) waive off octroi on LPG to give relief to consumers. This comes after the central government recently hiked the price of LPG by Rs50.

Rahul Shewale, chairman of the standing committee, said, “If not on LPG, then BMC should stop charging octroi on natural gas. Even a Re-1 cut would make a difference to the customer.”

He added, “The civic administration is gathering information and working on how the city’s LPG consumers would benefit by the cut,” he said.

However, an official from the octroi department claimed that even if the BMC waived off the 3% octroi on natural gas, it would make a negligible difference on the total cost of the LPG cylinder. “Also, it would not be possible to ascertain whether citizens are really getting any kind of relief,” he said.

Meanwhile, the Communist Party of India activists protested against the price hike on Thursday.

Even the Nationalist Congress Party, one of the ruling alliances in the state, and the Bharatiya Janata Party are agitating against the price hike of petroleum products.

Similarly, workers from Maharashtra Navnirman Sena had carried out a symbolic ‘janaza’ in Dongri area on Tuesday.