LPG prices hiked by Rs11.42 per cylinder to raise dealer commission
Moneylife Digital Team 06 October 2012

LPG price for subsidized cylinder is increased by Rs11.42 per cylinder, while for non-subsidized LPG cylinder, the hike is Rs38 per cylinder

 

Following a decision to raise commission paid to dealers, the government on Saturday hiked cooking gas (LPG) prices by Rs11.42 per cylinder.

 

For the consumer, subsidised LPG in Delhi will now cost Rs410.42 per cylinder, up from Rs399. Officials said the commission paid on market price or non-subsidised LPG too has been raised by Rs12.17 to Rs38 per cylinder. Accordingly, a non-subsidised LPG cylinder price will go up from Rs883.5 to Rs921.5.

 

The National Federation of LPG Distributors of India (NFLDI), which represents around 10,500 cooking gas sale agencies, had asked the Centre to make the LPG pricing uniform and allow a direct transfer of subsidy to its intended beneficiaries. The gas dealers had reportedly wanted a single price and commission of Rs65 per cylinder, the same as on commercial cylinders.

 

Earlier this week, state-owned oil marketing companies hiked prices of non-subsidised cooking gas (LPG) by Rs127 per cylinder to Rs883.5 citing increase in international oil prices.

 

Last month, the Indian government had decided to restrict supply of subsidised domestic LPG cylinders to six per households in a year. Any requirement over and above this will have to be bought at market rate, which is almost double the subsidised price of Rs399 for a 14.2-kg cylinder in Delhi.

 

"The retail selling price of the 14.2-kg non-subsidised domestic LPG cylinder at Delhi has been increased by Rs127 per cylinder with effect from 1st October," Indian Oil Corp, the nation's largest fuel retailer, said.

 

While subsidised cylinders will continue to be available at Rs410.42 per cylinder (in Delhi), the market rate of non-subsidised LPG cylinders will be notified on a monthly basis by fuel retailers.

 

 

 

 

 

 

 

 

Comments
LALAN KUMAR
1 decade ago
IS LPG DISTRIBUTOR PAYING SERVICE TAX ON COMMISSION RECEIVED FROM OIL COMPANIES PLEASE COMMENTS.
Lalan Kumar
M G WARRIER
1 decade ago
It is high time GOI thought in terms of a predictable pricing policy. The uncertainty about prices of essential articles and services becomes a breeding ground for unethical practices. Changes in costs for services and prices of articles which are pre-decided and declared as in the case of petroleum products, food articles and milk through public delivery system and so on should be made, say, once a quarter, may be, effective from the last Friday of each quarter.

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