Similarly, the three lose Rs 330 on every LPG cylinder that they sell to households. Of this, they are reimbursed Rs 22.58 from the budget with the remaining under-recovery shared in the same method as petrol and diesel.
With LPG prices remaining unchanged since November 5, 2004, the new strategy of the OMCs was to cut losses by restricting new connections while restricting cylinder refills to existing customers 24 days after the last delivery. When they informed the ministry that they had stopped issuing new connections from Thursday, they were told to lift the ban and instead concentrate on checking diversions and multiple connections, sources said.