The Indian Oil Corporation (IOC) authorities on Wednesday said that the price of the non-subsidised domestic LPG cylinder will move up and down every month based on the price of LPG in the international market, which in turn is determined by global demand-supply situations.
However, they made it clear that when supplies improve and prices fall, the benefit would be passed on to the consumers.
“At present, the international LPG market is tight on the supply side owing to increased global demand since LPG is also used in several markets as a winter heating fuel.
“The retail price of the 14.2-kg non-subsidised domestic LPG cylinder at the national capital has increased by Rs 127 per cylinder due to corresponding increase in the average price of LPG in the international oil market. Any decrease in the price of LPG in the international market would similarly be passed on to the consumers by way of reduction in the domestic prices of non-subsidised domestic LPG cylinders supplied to households during the monthly review,” said IOC marketing director M Nene.
The government had decided to restrict the supply of subsidised domestic LPG cylinders to consumers at six cylinders (of 14.2 kg) per annum. There will, however, be no restrictions on the number of non-subsidised cylinders over and above the 6 capped subsidised cylinders.
“While subsidised cylinders will continue to be available at Rs 399 per cylinder (at Delhi), the market rate of LPG cylinders at non-subsidised rates is to be notified by the Oil Marketing Companies (OMCs) on a monthly basis,” Nene said.
The government has granted exemption from Customs & Excise Duty on non-subsidised LPG cylinders to domestic consumers only to reduce the price burden on the common man, he added.
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