Mumbai: Oil companies in the country plan to pass on the benefits of fluctuations in the global energy prices to consumers with reductions in the retail sale price of the regular domestic non-subsidised LPG cylinders, a top official said here Wednesday.
The retail sale price of the 14.20 kg domestic non-subsidised LPG cylinder has shot up by Rs.127 a cylinder (in Delhi) from Oct 1, vis-a-vis prices declared for September 2012 due to corresponding increase in the average price of LPG in the international markets last month, said Indian Oil Corporation's director M. Nene, here late Wednesday evening.
The current prices of the non-subsidised non-domestic LPG cylinder stands at: Rs.913 in Kolkata, Rs.894 in Mumbai, Rs.883.50 in Delhi and Rs.877.50 in Chennai.
"Any decrease in the LPG prices in international markets would be passed on to the consumers by way of reductions in the domestic prices of non-subsidised domestic LPG cylinders supplied to households during the monthly review," Nene assured.
Similarly, any increase would also have to be borne by the consumers, depending on a variety of factors in the international markets, including demand-supply in the world, the fluctuating dollar rates and other issues, he added.
Nene added that although the government has restricted the supply of subsidised domestic LPG cylinders to six of 14.20 kg per annum, there is no restriction on the number of non-subsidised cylinders the consumers can buy.
Besides, the government has granted exemption on customs and excise duties on non-subsidised LPG cylinders to reduce the price burden on the domestic consumers.
Under the new scheme, the public sector oil marketing companies shall henceforth declare monthly prices of non-subsidies 14.20 kg domestic LPG cylinder for supplies to households as per landed costs on import parity basis, which would be based on multiple factors.
Around 95 percent of the country's LPG gas consumers shall have to bear the higher costs under the new scheme; the remaining five percent, mostly in some major cities like Mumbai, are using piped gas.