Non-subsidised LPG rate cut may benefit very few users

Out of 1,000 consumers, only 10 book more than 12 refills a year

December 03, 2014 12:51 pm | Updated November 16, 2021 05:54 pm IST - TIRUCHI:

Though the consumers in general have welcomed the reduction in prices of non-subsidised cooking gas by Rs. 113 a cylinder, there is a strong view that it will not bring benefit to the domestic consumers.

As per the new rate, a 14.2 kg cylinder will cost Rs. 749.50. But the rate cut will be applicable to consumers who require cylinders only after the exhaustion of 12 subsidised cylinders a year.

Although it was touted as the fifth straight reduction in the rates of non-subsidised LPG since August, many of them say that it will benefit just around 1 per cent of customers, who want to have more than 12 cylinders a year.

“I have never required more than 10 cylinders per year. Hence, the price reduction will not benefit me. I don’t think it will benefit most of the consumers,” S. Gowri of Cantonment.

Echoing the same sentiment, a Liquefied Petroleum Gas dealer said just about 10 out of 1,000 customers booked for more than 12 cylinders a year. It meant that it would hardly bring tangible benefits to customers. It was likely to benefit hospitals, anganwadi centres, and those getting cylinders under a special category, which may require more than 12 cylinders.

Similarly, the rate cut has not enthused the hoteliers, restaurant owners too, as they were entitled to use only commercial cylinders available in open market.

A small-time restaurant owner in Cantonment said the rate cut would in no way benefit them as they should not use domestic cylinders. If the government really wanted to pass the benefit of slump in international crude oil prices to customers, it should have reduced the rate of commercial cylinders. It would have ultimately paved the way for bringing down prices of food items in restaurants.

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