Cap on LPG cylinder immediate

The decision to cap the number of subsided domestic LPG cylinders to six per year will come into effect immediately.

With this, each consumer will be eligible for three cylinders for the remaining part of this financial year.

An official statement said while subsidised cylinders will continue to be available at Rs 399 per cylinder in Delhi, the market rate of non-subsidised cylinders will be notified by the oil marketing companies (OMCs) every month.

The step is expected to reduce under-recovery of oil marketing companies by about Rs 5,300 crore in the current financial year.

Yet, the oil companies are expected to incur an estimated loss of Rs 32,000 crore in the current fiscal.

A consumer can buy any number of cylinders over and above the cap of six at the market-determined price.

With the global crude prices hovering around $115 per barrel, oil firms were losing Rs 347 on every cylinder of domestic cooking gas.