Liquefied Petroleum Gas : Impact of Increase in Excise Duties and Tax

Liquefied Petroleum Gas : Impact of Increase in Excise Duties and Tax

GOVERNMENT OF INDIA
MINISTRY OF FINANCE DEPARTMENT OF REVENUE 

RAJYA SABHA

UNSTARRED QUESTION NO-3097

ANSWERED ON – 23.03.2021

IMPACT OF INCREASE IN EXCISE DUTIES AND TAX ON LPG

Liquefied Petroleum Gas
3097 Shri Anand Sharma

Will the Minister of Finance be pleased to state:

(a) whether Government is cognisant of the severe impact of the frequent increase in excise duties and tax on Liquefied Petroleum Gas on consumers and reduced consumptions;

(b) if so, the details thereof;

(c) whether Government is considering steps to reduce such taxes and consequent burden of impact of high prices of household fuel and petrol/diesel on consumers; and

(d) if so, the details thereof?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE 

(SHRI ANURAG SINGH THAKUR)

(a) Liquefied Petroleum Gas attracts GST and does not attract Excise duty. LPG for domestic household consumers attracts GST rate of 5%.The GST rates are being notified on the recommendation of GST Council. There has been no change in GST rates on LPG.

(b) The overall LPG consumption has continued to improve for the three-month period of December 2020-Feb 2021 and has registered a growth of 7.3% for all domestic LPG customers (PMUY & Non-PMUY). LPG consumption amongst PMUY customers registered a growth of 19.5%, during these three months over the same period of last financial year. Compared year-on- year, the overall domestic LPG sales have registered a growth of 10.3% during the current fiscal (till Feb’21).

(c) and (d) At present, there is no such no proposal. Further, prices of petrol and diesel have been made market-determined by the Government with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel in line with their international product prices, exchange rate, tax structure, inland freight and other cost elements.   The prices of petroleum products in the country are linked to the price of respective products in the international market. However, the Government continues to modulate the effective price to consumer for Subsidized Domestic LPG.

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