Govt Reduces Import Duty And Cess On Domestic LPG

The Indian government on Thursday announced a reduction in import duties and additional charges on domestic Liquid Petroleum Gas (LPG) effective from 1 September.

The decision, as outlined in a notification by the Central Board of Indirect Taxes and Customs, will see the import duty and the Agriculture and Infrastructure cess on LPG imported by private companies reduced from 15 per cent to zero.

This development follows recent changes in the LPG sector, where on 1 July, the government had raised the basic customs duty on domestically produced LPG cylinders from 5 per cent to 15 per cent. Additionally, a 15 per cent Agriculture Infrastructure and Development Cess (AIDC) had been introduced on imported LPG cylinders. However, to safeguard the interests of consumers, this increase in the basic customs duty did not apply to imports by state-run oil companies such as Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd, and Bharat Petroleum Corporation Ltd.

This move was aimed at preventing any adverse impact on consumers, ensuring the steady availability of LPG at affordable prices. In a separate announcement earlier this week, the government had unveiled a reduction of Rs 200 per 14.2-kg cylinder in the price of LPG cylinders for all domestic consumers. It was clarified that the cost reduction would be borne by the oil manufacturing companies, providing immediate relief to households across the country.