LPG price may go up by Rs 3.50 a cylinder

Domestic cooking gas (LPG) rates may soon go up by almost Rs 3.50 a cylinder in case the government accepts a recommendation for increasing the commission paid to dealers by over 9 per cent.

The Petroleum Planning and Analysis Cell, the fuel pricing arm of the Oil Ministry, has recommended raising the commission paid to dealers by Rs 3.46 a 14.2-kg cylinder to Rs 40.71, official sources said.

The increase in commission — which is normally passed on to consumers — is expected within a couple of weeks.

LPG in Delhi costs Rs 410.50 a 14.2-kg cylinder. 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 a cylinder to Rs 410.50.

PPAC also recommended raising dealers’ commission on 5-kg LPG cylinder by Rs 1.73 to Rs 20.36 a bottle.

A 5-kg LPG cylinder costs Rs 353 in Delhi currently.

PPAC said the annual revision in dealers’ commission is being proposed keeping in view the increase in expenses like salary and wages.

It said, however, 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 present. The 75 paise is over and above the commission of Rs 37.25.

Non-subsidised LPG is sold at market price of Rs 1,004 per cylinder in Delhi.

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

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