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IndianOil markets 5-kg commercial LPG cylinders in Chennai and its suburbs  

5-kg commercial LPG cylinders soon

IndianOil will soon start marketing 5-kg commercial LPG cylinders in Chennai and its suburbs.

The cost of the light weight and affordable cylinders will be determined by the market. The smaller version, like the 19-kg commercial cylinders, will not be subsidised.

"We plan to launch the 5-kg commercial cylinder within a month," an IOC official told The Hindu on Thursday. The launch of the small cylinder, he added, was part of the strategies to curb misuse of the heavily subsidised 14.2-kg domestic cylinder. Tea stalls, roadside eateries and small commercial establishments, who find the price of 19-kg cylinder prohibitive are expected to prefer the 5-kg cylinder.

May cost Rs. 300

The small cylinder is expected to be priced around Rs.300 each. Commercial LPG, at the prevailing price of 19-kg cylinder, inclusive of Value-Added Tax and dealer commission, works out to nearly Rs.60 a kg. The price per kg of the subsidised LPG is a little over Rs.22, thus making the 14.2-kg an attractive proposition for tea stalls and eateries.

Besides Chennai, the 5-kg commercial LPG cylinders will be launched in 9 other cities across the country.
Hindu, Chennai, June 18, 2010

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