Wednesday 11 December 2013

LPG price up Rs 3.46 per cylinder due to increase in dealers' commission

The retail price of domestic cooking gas (LPG) has gone up by Rs 3.46 for 14.2-kg cylinder to Rs 40.71 after government raised the commission paid to dealers by over 9% to offset their rising costs such as salary, power and rentals. The development comes two days after Petroleum and Natural Gas minister M Veerappa Moily denied any rise in cooking gas prices.

The increase in commission, which as per practice is passed on to consumers, will increase the cost of LPG in Delhi to Rs 413.96 per 14.2-kg cylinder from Rs 410.50. In addition, dealers’ commission on 5-kg LPG cylinder has been increased by Rs 1.73 to Rs 20.36. A 5-kg LPG cylinder costs Rs. 353 in Delhi currently. 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. Dealers' commission on LPG has increased by more than 240% over the past six years - from Rs 16.71 per 14.2-kg LPG cylinder in February 2007 to Rs 40.71 currently.

However, there has been no revision in the additional distributor commission of 75 paisa, paid over and above the normal commission of Rs 40.71, on sale of non-subsidized cylinders. Non-subsidized LPG is sold at market price of Rs 1017.50 per cylinder in Delhi.

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