LPG is traditionally available in 14.2-kg cylinders, which are not very convenient to carry and its cost at Rs 418 is considered high for poor and rural population.
A 5-kg cylinder priced at Rs 155 was introduced in October 2013.
"We are now planning to introduce a 2-kg cylinder that can be easily carried... this will be particularly beneficial for the rural people and poor who cannot afford to pay the price of a 14.2-kg or even 5-kg cylinder," Oil Minister Dharmendra Pradhan said here.
To begin with, the penetration of 5-kg cylinder will be increased. New subsidised connections of 5-kg cylinders in rural as well as far flung areas will be issued in first place.
Pradhan was speaking at the launch of online booking of LPG connections.
"Consumers can now book a new connection online. It will be verified within 48 hours and a person from the nearest LPG agency will deliver a new connection at the door-step in next 3-4 days," he said.

He said the online booking will end hassles customers face in running to gas agencies for getting a new LPG connection. Already, a refill can be ordered online.
The 2-kg cylinder will cater to the LPG requirements for all sections of society including economically weaker families, students and migrant labourers who do not have proof of address due to acquiring residence on temporary basis. Such people can buy 5 Kg LPG cylinder at market price.
He also said about 25 lakh people have voluntarily given up subsidy on LPG, helping widen the reach the scarce fuel.
"On an average 50,000 people from all works of life are giving subsidy... the target set by Prime Minister Narendra Modi is one crore," he said.
Also, the scheme to pay subsidy directly in bank accounts of customers, called the Direct Benefit Transfer on LPG, has been recognised by the Guinness Book of World Records as the largest cash transfer programme in the world, he said adding it has eliminated "middle-men and black marketers" and ensured the fuel is delivered to right people.

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