Department of Information and Public Relations

Press Release No. 333/11

EXEMPTION OF TAX ON PETROLEUM PRODUCTS

Shillong, June 1, 2011: The recent hike in the selling price of Diesel, LPG and Kerosene announced by the Ministry of Petroleum and Natural Gas on 25th June 2011, saw an increase of Rs. 3 per litre in the rate of Diesel, Rs. 50 per LPG cylinder domestic of 14.2Kg and Rs. 2 per litre in the case of Kerosene. This has been the spillover effect of increase in price of crude oil in the International market.

In order to ameliorate and lessen the burden on the general consumers, particularly the poorer sections of the society, occasioned by hike in prices, the State Government of Meghalaya has also taken due note of these public concerns and after due deliberations, the Cabinet has decided to give full exemption of tax on Kerosene and LPG. This will provide a relief to the consumers to the extent of Rs. 20.13 paise per domestic cylinder in respect of LPG and Re. 0.67 paise per litre in respect of Kerosene.

In order to contain the likely rise in the prices of other essential commodities on account of the increase of Rs.3 per litre in the rate of diesel, the Cabinet also decided to exempt Rs.0.50 paise per litre in the rate of the tax on Diesel with immediate effect.

All these steps have been taken by the State Government in order to reduce the impact of the price hike on the General Public and consumers in the State. Though it will undoubtedly result in loss of revenue totaling to the tune of Rs. 9.52 crores annually to the State Exchequer, HSD Rs 7.03crore, LPG Rs1.76crore and Kerosene Rs 0.73 crore per annum, the Government has already taken a number of steps for mobilization of Additional Resources to make up for these revenue losses in the larger public interest.