On Thursday, the prices of non-subsidised cooking gas (LPG), which consumers buy beyond the cheaper quota of six cylinders, were hiked by Rs 26.50 to Rs 922 per unit on firming international rates.
Sources on Friday said that it was a communication by the Oil Ministry that led to a reversal of the price hike on non-subsidised LPG cylinders.
The hike was supposed to come into effect on Nov 11. Government was forced to reverse its earlier decision after facing criticism from all sides. Oil Ministry sources say that price hike issue would be reviewed soon. Political observers say that Congress-led UPA government has made the decision in view of upcoming Himachal Pradesh Assembly elections.
The government had in September restricted the supply of subsidised domestic LPG cylinders to six per household in a year. Any requirement above this will have to be bought at market rate, which is more than double the subsidised price of Rs 410.42 per cylinder in Delhi.
State-owned oil firms revise rates of non-subsidised LPG on 1st of every month based on the average imported cost and rupee-US dollar rate during the previous month. There is no restriction on the number of non-subsidised cylinders that a consumer buys beyond the six subsidised bottles.