The Tenth Cylinder Costs Thrice the Subsidised Cylinder
By C Shivakumar - CHENNAI
Published: 06th January 2014 07:18 AM
Last Updated: 06th January 2014 07:18 AM
Chennaiites will now have to cough up more than three times the cost of a subsidised cylinder to get the 10th cylinder. An unsubsidised cylinder will now cost a consumer `1,234, while the consumer has to pay `401 for the subsidised one.
The subsidies are based on a quota of nine cylinders. Anything above nine cylinders will be unsubsidised.
Nearly 10 to 15 per cent of LPG consumers in the city will be hit, as the price of unsubsidised cylinders has been hiked by `220 by the oil companies.
“The large families will be the most-affected ones under the new quota system,” says a distributor.
She says that on an average they sell 900 cylinders of which 50 are unsubsidised.
Those who have not registered for Aadhaar cards are also likely to bear the brunt when the Direct Benefit Transfer for LPG comes into being, according to a distributor
Direct Benefit Transfer for LPG consumer (DBTL) is a 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 subsidised price and full market price ie the subsidy will be transferred to his or her bank account up to a capped limit (nine cylinders in a year). This is applicable to only those, who have Aadhaar cards. And, it could have an impact on those, who don’t have Aadhaar, as they 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.
The Centre is also insisting on registering the Aadhaar number with the distributors. A census official says that till now 3.86 crore Aadhaar cards have been generated and distributed. Many are yet to register 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 cost close to `1,850 last month now costs `2,265.
So, Chennaiites have to be better prepared to cough up nearly three to four times more, if they have to get the 10th cylinder.
Moreover, 1,234 is not a fixed price and it is expected to rise or fall depending on the international market, the distributor adds.