LPG ball in Bengal’s court

Calcutta, Sept. 21: Non-subsidised domestic cooking gas will cost Rs 832 per cylinder in Calcutta following the Centre’s decision to forego customs and excise duties that add up to Rs 103.50 apiece. However, if the Bengal government drops local levies, consumers can save Rs 52.50 more as the price will fall further to about Rs 780 a cylinder. According to new rules, every family will have to pay the market rate once it crosses the annual subsidy quota of six cylinders available at Rs 401 apiece. Congress-ruled states have been told to raise the limit to nine cylinders. On top of that, the Centre today announced the abolition of duties on market-rate domestic cylinders. But Bengal charges a cess and a 4 per cent VAT on commercial cylinders. If the new non-subsidised domestic segment is spared these levies, the price can come down by Rs 52.50 to about Rs 780 for a 14.2kg cylinder. An IOC official said the final price would depend on international fluctuations.