State-owned oil companies in India have hiked price of non-subsidised cooking gas (LPG) by Rs 127 per cylinder to Rs 883.5 on account of increase in international oil prices.
Last month, the Indian government had decided to restrict supply of subsidised domestic LPG cylinders to six per households in a year. Any requirement over and above this will have to be bought at market rate, which is almost double the subsidised price of Rs 399 for a 14.2-kg cylinder in Delhi.
"The retail selling price of the 14.2-kg non-subsidised domestic LPG cylinder at Delhi has been increased by Rs 127 per cylinder with effect from October 1," Indian Oil Corp, the nation's largest fuel retailer, said.
IOC Director (Marketing) M Nene said any decrease in the price of LPG in the international market would similarly be passed on to consumers by way of reduction in the prices of non-subsidised LPG cylinders.
"There will, however, be no restrictions on the number of non-subsidised cylinders over and above the six capped subsidised cylinders," IOC said.
While subsidised cylinders will continue to be available at Rs 399 per cylinder (in Delhi), the market rate of non-subsidised LPG cylinders will be notified on a monthly basis by fuel retailers.
The government has granted exemption from customs and excise duty on non-subsidised LPG cylinders only for domestic consumption to reduce the price burden on the common man, Nene said.