A 14.2-kg LPG cylinder that consumers will have to buy after they exhaust their enhanced quota of 9 subsidised bottles in a year, will cost Rs 901.50 from today, according to Indian Oil Corp (IOC).
The government had in September last year fixed a quota of six subsidised LPG cylinders per household in a year. This was increased to 9 cylinders in January. Any requirement over and above this entitlement has to be bought at market price.
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In the immediate aftermath of the September decision, oil PSUs had hiked price of non-subsidised LPG by Rs 26.50 per cylinder from November 1 but had to roll it back within hours as the government did not want to compound the backlash it was already facing for limiting supply of subsidised LPG to just six cylinders per household in a year.
But soon after the decision to raise the supply of LPG at subsidised rate of Rs 410.50 to 9 cylinders per household in a year from six, the rate for non-subsidised gas was hiked by Rs 46.50 per 14.2-kg cylinder to Rs 942 in Delhi from January 18.
With oil prices easing, rates were cut to Rs 904.50 from March 1 and now they been further cut to Rs 901.50.
In Mumbai, every non-subsidised LPG cylinder will cost Rs 912 as against Rs 919.50 till last month. In Kolkata, prices have been cut by Rs 6.50 to Rs 926.50 while in Chennai prices have been reduced from Rs 898 to 891.50.
Sources said losses on sale of LPG at subsidised rates have fell to Rs 434.50 per cylinder from Rs 439 previously. Alongside the decision to raise cap on supply of subsidised LPG cylinders, the government had also moved towards deregulating diesel rates by allowing oil firms to hike rates by 40-50 paisa per litre once every month till such time that the entire losses are wiped out. Diesel rates have gone up three times by 50-51 paisa a litre each time.
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