LPG price hiked by Rs 3.46 per cylinder

The government has hiked the price of domestic cooking gas (LPG) by Rs 3.46 a cylinder after the commission paid to dealers was increased by over 9 per cent.

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

"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.

Dealers' commission on 5-kg LPG cylinder has been increased by Rs 1.73 to Rs 20.36 per bottle.

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 Rs 40.71.

Non-subsidised LPG is sold at market price of Rs 1,017.50 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. Cooking gas prices were raised from Rs 399 per cylinder to Rs 410.50. The same for 5-kg cylinder was hiked from Rs 13.30 to Rs 18.63 per bottle.

A 5-kg LPG cylinder currently costs Rs 353 in New Delhi. A 14.2-kg cylinder, which at present costs Rs 410.50, will now cost Rs 413.96.

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.