New Delhi: Bowing to mounting pressure from the opposition parties as well as the people, the Delhi government on Monday partially rolled back the prices of LPG gas cylinders meant for domestic consumption as well as the CNG.
The Delhi government, in its 2010-2011 Budget announced recently, had withdrawn the Rs 40 subsidy extended to LPG gas cylinders. However, in the wake of increasing public pressure, it has decided to withdraw the value-added tax (VAT) imposed on the LPG.
The prices of LPG cylinders in the national capital are now likely to come down by Rs 12-15, meaning the effective hike for domestic consumers would be somewhere between Rs 25 to 28.
Also, the Indraprastha Gas Limited, which supplies compressed natural gas to Delhi and surrounding areas, had recently announced an increase of 50 paise per kg in the consumer price of CNG.
To offset that burden, the Sheila Dikshit government today announced the withdrawal of VAT imposed on the CNG.
The entire public transport system in Delhi runs on CNG, and a reduction in its prices will likely see the prices of essential commodities come down due to low transportation cost.
The government also decided to reduce the VAT charged on coffee and tea, from 12.5% to 5%.