The 10th cylinder costs three times more than subsidised cylinder

C Shivakumar

Chennai:

Chennaites will now have to cough up more than three times the cost of a subsidised cylinder to get the 10^th cylinder.

An unsubsidised cylinder will now cost a consumer Rs 1234 while the consumer has to pay Rs 401 for the subsidised one.

Interestingly, the subsidies is based on quota of nine cylinders. Anything above nine cylinders would be unsubsidised.

Nearly 10 to 15 per cent of LPG consumers in the city would be hit as the price of unsubsidised cylinders has been hiked by Rs 220 by the oil companies.

 “It is the large families which will be hit by the new quota system,” says a distributor. She says that on an average they sell 900 cylinders of which 50 are unsubsidised.

Interestingly, those who have not registered for Aadhar card are also likely to face music when the Direct Benefit Transfer for LPG comes into being, says a distributor

Direct Benefit Transfer for LPG consumer (DBTL) is the scheme aimed to improve the subsidy administration of LPG across the country. As per this scheme an LPG consumer will get his or her cylinder at full market price and the differential between subsidized price and full market price i.e. the subsidy will be transferred to his or her bank account up to a capped limit(9 cylinders in a year). This is applicable to only those who have Aadhar cards.

And it could have an impact on those who don’t have Aadhaar and have to cough up a huge sum to get a unsubsidised connection.

A distributor says that they are likely to shift into the Aadhaar formula soon. Interestingly, the Centre is also insisting on registering the Aadhar number with the distributors.

A census official said that till now 3.86 crore Aadhar card has been generated and distributed. Interestingly, many have yet to be registered and the official says the number would go up.

But the biggest shock is the rise of prices of commercial gas cylinders. A commercial gas cylinder which was costing Rs 1,850 last month now costs Rs 2,265. So Chennaites have to be better prepared to cough up nearly three to four times more if they have to get the 10^th cylinder. And 1234 is not a fixed price and it is expected to rise or fall and this will depend on how the international market behaves, the distributor added.