The government has decided to hike the commission paid on market price or non-subsidised LPG by Rs 12.17 to Rs 38 per cylinder. Accordingly, a non-subsidised LPG cylinder’s price will go up from Rs 883.5 to Rs 921.5.
A similar exercise is on to raise commission paid to fuel pump dealers on sale of petrol and diesel. The ministry is proposing to raise commission paid on petrol by 23 paisa to Rs 1.72 and diesel by 10 paisa to Rs 1.01 a litre.
The hike being considered for petrol and diesel is less than what is being demanded by dealers, in view of their working capital cost going up due to frequent price changes and sharp rise in overheads like power charges.
Dealers wanted a hike of at least 67 paisa for a litre of petrol and 42 paisa for diesel, citing reasons that unlike gas agencies, fuel pumps stay open 365 days a year on a 24-hours basis thereby incurring higher operational costs.
“Gas agencies are closed on national holidays as well as once a week. Besides, petrol pumps provide free facilities such as toilets, water and air-pressure for tyres, while LPG dealers do not provide any such service, Federation of All India Petroleum Traders general secretary Ajay Bansal said.
The government has also raised commission paid on 5-kg cylinders by Rs 5.33 to Rs 18.63.
Officials said the hike in LPG rates comes within days of oil firms raising price of non-subsidised cooking gas by Rs 127 per cylinder to Rs 883.5 on account of increase in international oil prices.
