October 6, 2012 4:28 PM

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LPG price hiked by Rs 11.42 per cylinder

The Cooking gas – LPG- price has been hiked by 11.42 rupees per cylinder. This follows government decision to raise commission paid to the dealers. Petroleum and Natural Gas Ministry today issued orders raising commission paid to LPG dealers from 25.83 rupees per 14.2-kg cylinder to 37.25 rupees. The increase in commission has been passed on to consumers.

In Delhi, the consumer has to pay 410.42 rupees per cylinder for the subsidized LPG cylinder, up from 399 rupees. According to officials, the commission paid on market price or non-subsidised LPG too has been raised by 12.17 rupees to 38 rupees per cylinder. Accordingly, a non-subsidised LPG cylinder price will go up from 883.50 rupees to 921.50 rupees. The government has also raised commission paid on 5-kg cylinders by 5.33 rupees to 18.63 rupees.

AIR correspondent reports, the hike comes within weeks of the government deciding to restrict supply of subsidised cooking gas to 6 cylinders of 14.2-kg size per household in a year. The remaining supplies would have to be sourced at market rates.

A similar exercise is on to raise commission paid to petrol pump dealers on the sale of petrol and diesel. The Ministry is proposing to raise commission paid on petrol by 23 paisa to one rupee 72 paisa and on diesel by 10 paisa to one rupee one paisa a litre. Currently, petrol pump dealers get one rupee 49 paisa a litre commission on sale of petrol and nintyone paisa a litre on diesel.

Pump operators have demanded that comission should be raised to two rupees ten paisa a litre on petrol and one rupee thirtythree paisa per litre on diesel reasoning that unlike LPG agencies, petrol pumps open 365 days a year on 24 hours basis incurring higher operational cost. General Secretary of Federation of All India Petroleum Traders, Ajay Bansal said LPG agencies are closed on national holidays and 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.

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