The price of LPG cylinder was hiked after the government raised commission paid to dealers by over 9% to Rs40.71 per 14.2-kg cylinder
The price of domestic cooking gas (LPG) was on Tuesday hiked by Rs3.46 per cylinder after the union government raised the commission paid to dealers by over 9% to Rs40.71.
An official from the Oil Ministry said, “The commission paid to dealers has been increased by Rs3.46 per 14.2-kg cylinder to Rs40.71. Consequently, the retail selling price of domestic LPG too has been increased in the same proportion”.
The increase in commission — which as per practice is passed on to consumers — has been effected from today.
LPG in Delhi costs Rs410.50 per 14.2-kg cylinder and after the increase will cost Rs413.96.
The last revision in cooking gas prices happened in October last year when because of an increase in dealers’ commission the rates were raised from Rs 399 per cylinder to Rs 410.50.
Also, the dealers’ commission on 5-kg LPG cylinders has been increased by Rs1.73 to Rs 20.36 per bottle. At present a 5-kg LPG cylinder costs Rs353 in Delhi.
The official said an annual revision in dealers’ commission is being proposed keeping in view the increase in expenses such as salary and wages.
He, however, said no revision in the additional distributor commission of 75 paisa paid on sale of non- subsidised sale of 14.2-kg cylinder was required for the time being. The 75 paisa is over and above the commission of Rs40.71.
Non-subsidised LPG is sold at market price of Rs1,017.50 per cylinder in Delhi.
The LPG dealers’ commission was last revised on 7 October 2012, when it was raised to Rs37.25 from Rs25.83 per 14.2-kg cylinder. The same for the 5-kg cylinder was hiked to Rs18.63 from Rs13.30 per bottle.
The commission has more than doubled in the past six years with almost yearly increases. The commission was raised from Rs16.71 per 14.2-kg LPG cylinder to Rs19.05 on 1 March 2007; to Rs20.54 on 4 June 2008; to Rs21.94 on 30 June 30 2009, and to Rs25.83 per bottle on 1 July 2011.
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