New Delhi: The Government has increased the commission paid to LPG dealers, leading to a hike of over Rs 2 per cylinder in the price of the cylinder. So now, a 14.2-kg subsidised LPG cylinder in Delhi will cost Rs 507.42 against the earlier price of Rs 505.34, said a price notification of state-owned fuel retailers. The move followed an order of the oil ministry raising the dealer’s commission. The ministry said the domestic LPG distributors’ commission for 14.2-kg cylinder and 5-kg cylinder was fixed at Rs 48.89 and Rs 24.20 respectively in September 2017. (Also read: Hike in LPG/CNG Price Assault on Budget of Common Man, Says Cong)
“Pending finalisation of De-Novo Study for revision of LPG distributors’ commission and taking into consideration the increase in transportation costs, wages etc, it has been decided to revise the distributors’ commission to Rs 50.58 per 14.2 kg cylinder and Rs 25.29 per 5 kg cylinder as an interim measure,” the order said.
This is the second hike in rates this month. On November 1, the prices had gone up by Rs 2.94 per cylinder. The non-subsidised or market price LPG rates went up by Rs 60 per cylinder to Rs 939. Because of the rise in dealer’s commission, the price is now Rs 942.50 per 14.2-kg cylinder.
Since June, rates have gone up every month. In Mumbai, a 14.2-kg LPG cylinder costs Rs 505.05 while in Kolkata it is priced at Rs 510.70. Chennai has a price of Rs 495.39. Rates differ from state to state depending on local taxes and transportation cost.
The dealer’s commission would comprise Rs 30.08 establishment charges and Rs 20.50 delivery charges for a 14.2-kg cylinder. For the 5-kg cylinder, the establishment charges have been fixed at Rs 15.04 and the rest Rs 10.25 are delivery charges, the ministry order said. Customers who collect their refills from distributor’s premises will continue not to be charged for delivery, it said. Before the hike, the dealer’s commission was Rs 29.39 establishment charges and Rs 19.50 delivery charges for a 14.2-kg cylinder.