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Commercial Cylinder Prices Cut by Rs 158; LPG Exempt from Agri Cess

In recent developments, following the Centre’s reduction of domestic LPG cylinder prices, oil marketing companies have taken a similar step, this time targeting commercial cylinders across the nation. Specifically, the price of 19kg commercial LPG cylinders witnessed a significant cut, amounting to Rs 158. As a result, the revised price of a commercial cylinder in Kochi now stands at Rs 1,537.5.

These price adjustments, both for commercial and domestic LPG (liquefied petroleum gas) cylinders, are part of the monthly revision routine, taking effect on the first day of each month, beginning with September 1. It’s noteworthy that the Union government recently introduced a substantial Rs 200 per cylinder reduction in domestic cooking gas prices, a move aimed at alleviating the burden of rising inflation on households.

It’s worth mentioning that the escalating prices of LPG have emerged as a significant electoral issue for the Congress party, as these costs experienced a sharp ascent over the past couple of years.

In a parallel development, the government has made an important decision regarding the agricultural cess. Effective from Friday, imports of LPG, liquefied propane, and liquified butane have been granted exemption from the 15 per cent agri cess, a tax that was previously imposed in July. The Finance Ministry issued a notification, declaring a complete exemption from the Agriculture Infrastructure Development Cess (AIDC) for these commodities, starting September 1.

To provide context, it’s important to note that the government ceased offering LPG subsidies back in June 2020, pricing cooking gas at market rates. The sole exception was a subsidy provided to economically disadvantaged women who received free connections under the Pradhan Mantri Ujjwala Yojana. Under this program, the government granted a subsidy of Rs 200 per cylinder for up to 12 refills annually, with the subsidy being directly transferred to the beneficiaries’ bank accounts, enabling them to purchase LPG at market prices from authorized dealers.

Furthermore, in October 2022, the government allocated a one-time grant of Rs 22,000 crore to oil companies. This financial support aimed to cover the losses incurred by these companies due to selling LPG at prices below cost in the preceding two years, reflecting the government’s commitment to stabilizing LPG pricing and supporting both consumers and suppliers in this essential sector.

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