With the price of non-subsidised cooking gas (LPG) coming down by Rs. 113 per cylinder, domestic customers who buy more than the quota of 12 cylinders will benefit.
Hotels, which purchase commercial cylinders, will also be paying Rs. 200 less a cylinder from this month.
K. Karthirmathiyon, secretary of Coimbatore Consumer Cause, says the price of LPG varies according to international price and oil companies should have transparency in the pricing system.
The benefit of reduction in prices should be extended for subsidised cylinders too.
According to M. Krishnan, Managing Director of Sri Krishna Sweets, the Government should simplify the procedure for domestic customers who purchase subsidised or non-subsidised cooking gas.
(The price of non-subsidised LPG was on Monday cut by Rs. 113 per cylinder. This is the fifth straight reduction in rates of non-subsidised LPG, which the customers buy after exhausting their quota of 12 cylinders at subsidised rates).
Hoteliers in the city point out that hotels buy commercial cylinder (19 kg each) and the prices for these vary according to the international price.
Oil companies inform the hotels about revision in prices at the beginning of every month.
Since, the prices are revised regularly, the fluctuation is not high for commercial cylinders.
Though the cost per cylinder has come down by Rs. 200 from Tuesday, it might not have much impact on the price of food. LPG is just one component in the pricing and cost of other raw materials is up, they say.
Further, international price of LPG usually goes up at this time of the year as the demand increases in several countries in winter and then it comes down.
This year, the downward reduction has happened earlier. Since the price of commercial cylinder is revised regularly, based on international prices, the reduction on Tuesday is not expected to have a major impact, they say.
