SHILLONG: In what can be a marginal relief to the consumers, the Government has decided to withdraw VAT from LPG cylinders, kerosene and diesel with effect from Friday.
The decision to reduce the prices of these essential items was taken at a hurriedly-convened Cabinet meeting on Friday.
With the exemption of VAT from the essential products, a domestic LPG cylinder would now cost Rs 20.13 less in the State.
The new price of a 14.2 kg LPG cylinder would be Rs 424 including the home delivery charges, according to an official notification issued by East Khasi Hills Deputy Commissioner Jopthiaw Lyngdoh on Friday.
The DC has urged the consumers to report the matter to the authorities if any LPG distributor or agency is found to be overcharging.
In the recent fuel price revision, the price of LPG was hiked by Rs 50, kerosene by Rs 2 per litre and that of diesel by Rs 3.
Meghalaya reduced the fuel prices after many other states relaxed the prices, West Bengal being the first to take the step.
The Government also relaxed the price of diesel by 50 paisa per litre and that of kerosene by 67 paisa per litre.
Talking to media persons after the Cabinet meeting, Chief Minister Mukul Sangma said, “We would have been happy had we been able to pass on more relief but we have our own constraints and limited resources.”
The Government will incur a loss of Rs 9.52 crore annually in terms of revenue generation due to the move to reduce the prices.
Last year, the State earned Rs 66.18 crore from the sale of 14.06 crore litres of high-speed diesel while the revenue generated from kerosene sale (1.7 crore litres) was Rs 73.08 crore and LPG (4.97 lakh cylinders) was Rs 1.76 crore during the period.
With the decision to reduce the fuel prices, the amount of revenue loss in kerosene sale would be Rs 0.73 crore, LPG cylinders Rs 1.76 crore and diesel Rs 7.03 crore annually.
