Come Apr 1, LPG to get costlier by Rs 27.58

The price of a cylinder of liquefied petroleum gas (LPG) will rise by Rs 27.58 and not Rs 40 from April 1.

After Chief Minister Sheila Dikshit’s hint last week that gas prices may not rise as much as the state budget suggested, the state government on Monday officially announced that the four per cent value-added tax (VAT) on LPG cylinders would be removed.

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Thus, while the removal of the Rs 40 subsidy on a gas cylinder in the budget would have raised its price by the same amount, the removal of VAT as well knocks Rs 12.42 off the proposed hike, raising the LPG cylinder’s price to Rs 310.

Faced with much criticism after announcing price hikes across a range of items in the budget, the government on Monday also removed the five per cent VAT imposed on compressed natural gas (CNG), thus ensuring that auto fares for the time being will stay the same. It also rolled back the 12 per cent VAT on movie tickets.