It also asked states to subsidise LPG cylinders.

The government had last week restricted supply of subsidised cooking gas to 6 per household in a year. Any requirement beyond this was to be purchased at market price, which currently works out to Rs 895 per 14.2 kg cylinder.

After the abolishing of 5 per cent customs duty and 8 per cent excise duty, the consumer price in Delhi would come to Rs 798. Subsidised cooking gas (LPG) in Delhi is currently sold at Rs 399 a cylinder.

"Since some LPG cylinders will not be subsidised, we have amended the notification for the non-subsidised household LPG cylinders... customs and excise (on them) will be zero", Chidambaram told reporters.

Non-subsidised commercial LPG cylinders, however, would continue to attract customs duty of 5 per cent and excise duty at 8 per cent.

Taking a cue from the Congress ruled states which have increased the number of subsidised cylinders to nine per year, the Minister asked other states to follow suit.

"I welcome the decision of certain state governments to subsidise three cylinders per year of LPG in addition to six cylinders for which the subsidy would be borne by the central government... I would commend all state governments to adopt such an approach", he said.