LPG cylinder prices go up by Rs 3.46, caused by hike in dealer commission

New Delhi: Domestic cooking gas (LPG) price was today hiked by Rs 3.46 per cylinder after the government raised the commission paid to dealers by over 9 percent.

“The commission paid to dealers has been increased by Rs 3.46 per 14.2-kg cylinder to Rs 40.71. Consequently, retail selling price of domestic LPG too have been increased in the same proportion,” an Oil Ministry official said.

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The increase in commission – which as per practice is passed on to consumers - has been effected from today.

LPG in Delhi costs Rs 410.50 per 14.2-kg cylinder and after the increase it will cost Rs 413.96.

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.

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Also, dealers’ commission on 5-kg LPG cylinder has been increased by Rs 1.73 to Rs 20.36 per bottle.

A 5-kg LPG cylinder costs Rs 353 in Delhi currently. The official said the annual revision in dealers’ commission is being proposed keeping in view the increase in expenses like salary and wages.

He, however, said that 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 Rs 1017.50 per cylinder in Delhi.

LPG dealers’ commission was last revised on October 7, 2012 when it was raised from Rs 25.83 per 14.2-kg cylinder to Rs 37.25. The same for 5-kg cylinder was hiked from Rs 13.30 to Rs 18.63 per bottle.

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The commission has more than doubled in the past six years with almost yearly increases. The commission was raised from Rs 16.71 per 14.2-kg LPG cylinder to Rs 19.05 on March 1, 2007; to Rs 20.54 on June 4, 2008; to Rs 21.94 on June 30,2009 and to Rs 25.83 per bottle on July 1, 2011.

PTI