Ranchi, June 8: With confusion in LPG cylinder rates still prevailing throughout the state, Indian Oil officials today clarified that there was no need to panic and that they expected the new reduced rates to be effective by mid-week.

“Oil companies have accepted in principle to give effect to the subsidy announced by the state. Both the governments of Delhi and Jharkhand have announced a subsidy of Rs 40 per LPG cylinder. Once the Delhi model is put in place, the same would be implemented in Jharkhand,” Sivasis K. Dey, the senior retail sales manager of Indian Oil and state-level co-ordinator of the state oil industry told The Telegraph.

Dey pointed out that he expected the modalities for Delhi to be finalised by tomorrow.

Since LPG dealers throughout Jharkhand are closed on Monday, the subsidised rates would be effective here by Tuesday or latest by Wednesday, he said.

He added that the new reduced rates would be effective from June 6 midnight as announced by the state government.

So far as reduction in rates of diesel of Rs 1.10 per litre was concerned, there has been no confusion since the state had reduced the sales tax from 18 to 14.5 per cent.

The new rates for diesel have already been made effective from June 6 midnight.

Meanwhile, president of the Jharkhand Indane Distributors’ Association Jayant Chauhan told The Telegraph that they were selling cylinders at increased rates of Rs 356.75 per cylinder following directives from the respective oil companies.

“The association is very much aware of the subsidy announced by the state government. We have already received a resolution to this effect from the department of food and civil supplies. But we can reduce our rates only after we receive proper directives from the IOL, Hindusthan Petroleum and Bharat Petroleum,” Chauhan said.

All LPG dealers would gladly refund the difference to consumers if the price hike was implemented with retrospective effect, said Chauhan.

Consumers could choose either a cash refund on production of cash memos at the outlets or against an adjustment of Rs 40 during their next refill.

Moreover, all efforts would be made to ensure that supply of LPG cylinders here was not hampered.