The government has agreed to reduce the Value Added Tax (VAT) to five percent, which means that prices of cooking gas will now come down by Rs. 12.50.
The move came after Chief Minister Sheila Dixit sternly said that there would not be any roll back on the subsidy of Rs 40 on LPG cylinders after she presented the Delhi budget for 2010-11.
The Chief Minister said that the hike in LPG prices was necessary to meet the expenses of upcoming Commonwealth Games.
However, following the protest against the price hike by members of his own party, the CM agreed to consider withdrawing the VAT on LPG to five per cent.