Make excise rates on LPG uniform: Oil Min to FinMin

New Delhi: Petroleum Ministry has asked the Finance Ministry to make excise rates uniform for different categories of domestic cooking gas (LPG), Oil Minister Dharmendra Pradhan said Thursday.

There is no excise duty on a 14.2-kg of subsidised LPG cylinder, but a similar sized non-domestic bottle attracts 8 percent levy.

Besides, while a subsidised domestic cylinder is exempt from customs duty, a 5 percent import duty is levied on non-domestic LPG cylinder.

"We have sought from Ministry of Finance a uniform tax pattern for all kinds of LPG customers," Pradhan told reporters here.

LPG or domestic cooking gas, is sold in different pack sizes - 5 kg, 14.2 kg and 19 kg. A household customer is allowed 12 cylinders of 14.2-kg each or 34 cylinders of 5 kg each during a year at subsidised rates. Any requirement beyond this has to be bought at market rate.

The subsidised LPG cylinders are exempt from excise as well as customs duty but not the other categories including 19-kg commercial cylinders.

This anomaly has led to diversion or black-marketing of subsidised cylinders for other uses.

"What we found is there are different tax patterns for different categories of customers - subsidised, non- subsidised, commercial and industrial. If there is not much impact on revenue due to having a uniform tax pattern, it will further help keeping stop black marketing," he added.

Government plans to increase LPG cover to 75 percent of the households in the country in next four years from the current coverage of 60 percent.

Pradhan also said India is seeking to increase import of crude oil as well as raise its level of energy engagement with Africa.

He added: "Today, Africa contributes 17 percent of our requirements in crude oil. We want to raise it through increasing our exploration and production activities and procuring more crude oil with a favourable price formula."

India is looking at acquiring oil and gas fields as well as taking up refinery, pipeline and gas distribution projects in Africa.