Now, 5-kg cylinders available at subsidised rates

In a move that will give cooking gas consumers more choice, state oil marketing companies have started selling mini 5-kg LPG cylinders at subsidised rates.

Till now, cooking gas (LPG) was available for domestic use in 14.2-kg cylinders. Consumers were entitled to 12 such cyclinders in a year at subsidised rate of Rs 417 in Delhi.

Now the subsidised cooking gas is also available in 5-kg packs, costing Rs 155 per cylinder in Delhi.

Oil Minister Dharmendra Pradhan told Rajya Sabha on Wednesday that consumers can avail of 34 cylinders of 5-kg in a year at subsidised rates. Any requirement beyond that would have to be bought at market price of Rs 351 per bottle.

Like the 14.2-kg cylinders, the mini subsidised packs are available at the regular LPG dealer or distributors. 5-kg LPG cylinders are available at select petrol pumps but at market price of Rs 351.

"Public sector oil marketing companies (OMCs) have reported that they are already marketing subsidised 5-kg cylinders up to 34 cylinders in a year per connection. Consumption beyond 34 cylinders in a year is at non-subsidised rate," he told Rajya Sabha in a written reply to a question.

The mini-LPG cylinder gives an option to people with small income to buy a refill at subsidised rate without having to shell out large sum of money.

Households now have the option to buy 12 cylinders of 14.2-kg each at subsidised rate in a year or 34 bottles of 5-kg each at the below-market price per annum. Any requirement beyond that is to be met through purchase of cooking gas at market price - Rs 752 per 14.2-kg cylinder and Rs 351 per 5-kg bottle.

Pradhan said there was "no proposal under consideration of the government" to remove the subsidy on 14.2-kg cylinders after introduction of the mini-packs.

Oil Ministry officials said consumers with regular LPG connection i.e. those who have enrolled themselves for cooking gas supply with a local distributor/dealer, can avail of either of 14.2-kg or 5-kg cylinders.

For convenience of accounting, they will have to give a declaration of availing either of the two at the beginning of the year. Any consumer option for 14.2-kg cylinder cannot midway switch to 5-kg bottle and vice-a-versa.

This is because the subsidy entitlement per household is fixed - 12 cylinders of 14.2-kg or 34 bottles of 5-kg each in a year. Midway chances may lead to accounting problems.

Unregistered consumers can however avail of market priced 5-kg cylinders from petrol pump without much paper work. These cylinders are available off the shelf and consumers do not have to pre-book a refill or delivery.

Officials said the supply of subsidised LPG in different cylinders has been made possible after the government decided to provide a fixed budgetary subsidy on the fuel. The subsidy has been fixed at Rs 40 per kg, half of which will come from the Budget and the remainder from upstream firms like ONGC.

With the subsidy fixed, it does not matter is the LPG is sold in 5-kg or 14.2-kg bottles, they said.