Date:03/12/2007 URL: http://www.thehindu.com/2007/12/03/stories/2007120358460100.htm

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Commercial LPG cylinder costs more than Rs. 1,000

N. Ravi Kumar

CHENNAI: The 19-kg liquefied petroleum gas (LPG) cylinders, marketed by national oil companies such as Indian Oil Corporation for use at commercial establishments, turned costlier from Saturday with their price touching an all-time high of Rs.1,046.05 each in Chennai.

The increase in the price from Rs.961.35 last month on the back of the galloping crude oil prices is a cause for concern for the oil marketing companies and LPG distributors.

They fear that it would only increase diversion of the subsidised domestic LPG cylinders.

It is not uncommon to find roadside eateries, small hotels and tea stalls using the 14.2-kg domestic cylinders, which cost around Rs.288.10 each.

An official of Bharat Petroleum Corporation Limited said that unlike the price of domestic cylinder, the price of the 19-kg cylinder is revised every month and over the past two months it has gone up by around Rs.150. The latest revision comes at a time when the companies and Civil Supplies Department are conducting raids on commercial establishments using domestic cylinders.

Sources among the distributors added that following the raids, the sale of 19-kg cylinders was looking up in the recent months. But with the price now crossing the Rs.1,000-mark, many of the existing users are likely to look for ways to cut cost.