For the second consecutive month, the price of non-subsidised domestic cooking gas cylinders, supplied by the State-owned oil marketing companies, was left unchanged.
The 19-kg commercial cylinders and the refills supplied to the exempted category customers, however, turned dearer. The decision of the companies presumably is based on their experience last month. In November, within hours of their increasing the price of the non-subsidised domestic cylinders by Rs.26 each, it had to be rolled back. “It was Himachal Pradesh election then, and now it the Gujarat polls,” industry sources said.
On reaching the prescribed limit of subsidised LPG cylinders, households are supplied the same refill but at a non-subsidised price. Saturday’s decision is bound to bring cheer to the households, even while providing another cause of concern for the companies. (In Chennai, a subsidised cylinder cost Rs.398 each, while the price of a domestic non-subsidised cylinder is Rs.890). “These cylinders are non-subsidised products, and their price is tied to that of international LPG price. We are not sure of how will this under-recovery be compensated,” an official of Indian Oil Corporation said. On Saturday, the 19-kg commercial cylinder price was increased to Rs.1,840 (Rs.1,765), and that the refills supplied to the exempted category customers, such as government hospitals, educational institutions and hostels, to Rs.1,317 (Rs.1,260).