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Rajasthan reduces prices of petro products

Special Correspondent

JAIPUR: Rajasthan has announced concessions and tax relief to customers on diesel, domestic cooking gas and kerosene to comply with the recent Congress directive to the party-run governments in the States in the wake of the hike in the prices of petroleum products. The concessions, announced after a late night meeting of the State Council of Ministers presided over by Chief Minister Ashok Gehlot here on Tuesday night, amount to a total of Rs.375 crore. The concessions have come into force with immediate effect.

The relief provided to the consumers of diesel will be 54 paise per litre against the recent hike of Rs.3 per litre. The State does not impose VAT on domestic cooking gas cylinder and the latest decision amounts to shelling out Rs.25 per cylinder from its own exchequer to subsidize the consumer, especially the housewife.

The recent hike in LPG cylinder price has been Rs.50. Mr. Gehlot said Rajasthan is the only State in the country to subsidize domestic LPG from its own funds. The LPG subsidy would cost the State exchequer Rs.125 crore.

Mr. Gehlot in the State Budget for 2011-12 had freed kerosene, supplied through the public distribution system, from the VAT. The current decision is to forgo the existing 14 per cent VAT on kerosene altogether.

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