The price of domestic cooking gas (LPG) was today 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, the retail selling price of domestic LPG too has 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 today.
LPG in Delhi costs Rs 410.50 per 14.2-kg cylinder and after the increase 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, the dealers’ commission on 5-kg LPG cylinders 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 an annual revision in dealers’ commission is being proposed keeping in view the increase in expenses such as salary and wages.
He, however, said 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 Rs 40.71.
Non-subsidised LPG is sold at market price of Rs 1,017.50 per cylinder in Delhi.
The 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 the 5-kg cylinder was hiked from Rs 13.30 to Rs 18.63 per bottle.
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.