The NOC has brought the two types of cylinders in the market with a view to providing subsidy in the Liquefied Petroleum (LP) Gas for domestic purpose and making the LP Gas business more systematic.[break]
The NOC would distribute the red cylinders for domestic use and the blue ones for commercial purpose. The NOC will provide subsidy in the cylinder for domestic use while no subsidy will be provided for the blue cylinders as they will be distributed for business purposes.
NOC, the state-owned oil supplier, would fix the same price for both cylinders based on the actual cost and that a family of up to four persons would get a certain discount per month on a cylinder bought.
The NOC would specify the banks to provide the subsidy amount but discussions were on to select the banks for this purpose, said Executive Director of the NOC, Suresh Kumar Agrawal.
The customers would get the subsidy amount after they submit the LP Gas Users´ Card and the purchase bill.
At present NOC is incurring loss of Rs. 588 per cylinder and this loss has accumulated to around Rs. 800 million by the end of January.
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