After the plunge in international rates, non-subsidised cooking gas LPG cylinders have been reduced by Rs. 3 in India. The Indian Oil Corporation said that the 14.2 kg LPG cylinder (which consumers buy after they exhaust the enhanced quota of 9 cylinders in a year), will cost Rs. 901.50 after reduction.
In Mumbai, the cost of a non-subsidised cylinder was priced at Rs. 919.50 and will now cost Rs. 912. Moreover, in Kolkata the prices have been cut by Rs. 6.50 to Rs. 926.50. Even the prices in Chennai have been reduced to Rs. 891 from Rs. 898. In the month of September 2013, the government had fixed a quota of six cylinders per household, a number which was increased to 9 in the month of January 2013.
Any requirement above the subsidised number was entitled to be bought at the market rate. As soon as the number of subsidised cylinders was increased to 9 from 6, the rate of the non-subsidised cylinders was hiked by Rs. 46.50-per-14.2 kg cylinder.
After the reduction of the international oil prices, the rates have been cut to Rs. 904.50 from March 1, 2013 and this has been further cut to Rs. 901.50. Sources familiar with the issue say that the losses on the sale of LPG at subsidised rates have fallen to Rs. 434.50 per cylinder.