Subsidised LPG price cut by Rs 5.91; non-subsidised rate reduced by Rs 120.50
New Delhi, Dec 31: Domestic cooking gas (LPG) price was cut by Rs 5.91 per cylinder Monday, the second straight reduction in a month's time due to tax impact on reduced market rate of the fuel.
A 14.2-kg subsidised LPG cylinder will cost Rs 494.99 in the national capital from midnight tonight as against Rs 500.90 currently, Indian Oil Corp (IOC), the country's largest fuel retailer, said in a statement.
This is the second straight monthly reduction in LPG rate. On December 1, subsidised LPG price was cut by Rs 6.52 per bottle.
That price cut had come after six consecutive monthly hikes in rates since June. The two price reductions have mostly negated the Rs 14.13 per cylinder increase in rates between June and November.
IOC said non-subsidised or market priced LPG rates have been cut by a steep Rs 120.50 per cylinder "due to fall in price of LPG in international market and strengthening of US dollar-rupee exchange rate."
It will now cost Rs 689 per 14.2-kg cylinder in Delhi.
On December 1, price of non-subsidised LPG was cut by Rs 133 per bottle.
All LPG consumers have to buy the fuel at market price. The government, however, subsidises 12 cylinders of 14.2-kg each per households in a year by providing the subsidy amount directly in bank accounts of users.
This subsidy amount varies from month to month depending on the changes in the average international benchmark LPG rate and foreign exchange rate.
When international rates move up, the government provides a higher subsidy. And when they come down, subsidy is cut.
As per tax rules, GST on LPG has to be calculated at the market rate of the fuel. The government may choose to subsidise a part of the price but tax will have to be paid at market rates.
So, with the fall in market price or non-subsidised LPG price, the tax incidence on subsidised cooking fuel has also come down, leading to the current price reduction.
"Accordingly, the upfront cash payment by the consumer of domestic LPG will also reduce by Rs 120.50 per cylinder. Domestic LPG consumer will now be required to make upfront cash payment of Rs 689 a cylinder in place of Rs 809.50 per cylinder," IOC said.
Subsidised cooking gas consumers will get Rs 194.01 per cylinder subsidy in their bank accounts for the month of January. The subsidy transfer in the customer's bank account has been reduced from Rs 433.66 in November and Rs 308.60 in December.
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Trump says EU has until July 4 to approve last year's trade deal or it will face higher tariffs
Washington (AP): President Donald Trump has said in a social media post that goods from the European Union would face higher tariff rates if the 27-member bloc fails to approve last year's trade framework by July 4.
The announcement on Thursday appeared to be a deadline extension after the president said last Friday that EU autos would face a higher 25 per cent tariff starting this week. Trump made the updated announcement after what he described as a "great call" with European Commission President Ursula von der Leyen.
Still, the US president was displeased that the European Parliament had yet to finalize the trade arrangement reached last year, which was further complicated in February by the US Supreme Court ruling that Trump lacked the legal authority to declare an economic emergency to impose the initial tariffs used to pressure the EU into talks.
"A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO!" Trump posted. "I agreed to give her until our Country's 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels."
It was unclear from the post whether Trump was implying that the tariff rates would jump on all EU goods or the increase would only apply to autos.
His latest statement indicates he might be backing away from his earlier threat on EU autos by giving the European Parliament several more weeks to approve the agreement.
Under the original terms of the framework, the US would charge a 15 per cent tax on most goods imported from the EU.
But since the Supreme Court ruling, the administration has levied a 10 per cent tariff while investigating trade imbalances and national security issues, aiming to put in new tariffs to make up for lost revenues.
