Hike due to increase in dealer commission; no revision in prices of non-subsidised LPG

Domestic cooking gas price was on Tuesday hiked by Rs. 3.46 per cylinder after the government raised the commission paid to dealers by over 9 per cent.

“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.

The increase in commission — which as per practice is passed on to consumers — has been effected from Tuesday.

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.

Also, 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 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 paise paid on sale of non-subsidised sale of 14.2-kg cylinder was required for the time being. The 75 paise is over and above the commission of Rs. 40.71.

Non-subsidised LPG is sold at a market price of Rs. 1,17.50 per cylinder in Delhi.