Tuesday, December 10, 2013

LPG price up on hike in dealer commission


LPG price up on hike in dealer commission

NEW DELHI: The price of subsidized cooking gas refills increased by Rs 3.46 each on Tuesday as the government raised dealer commission by more than 9% to offset their rising costs such as salary, power and rentals.

Commission has been increased to Rs 40.71 per cylinder. A refill in Delhi costs Rs 410.50 and would now be delivered to consumers for Rs 413.96.

Commission on five-kg cylinders has also been increased by Rs 1.73 to Rs 20.36 per refill. A five-kg cylinder costs Rs 353 in Delhi.

There has been no revision in the additional distributor commission of 75 paisa, paid over and above the normal commission of Rs 40.71, on sale of non-subsidized cylinders.

Non-subsidized refills, which consumers have to buy after exhausting the yearly quota of nine subsidized cylinders for each household, are sold at market price and cost Rs 1017.50 each in Delhi.

The oil ministry plans to revise commission every year to keep pace with rise in dealers' costs. The commission was last revised in October 2012 when cylinder rates went up from Rs 399 to Rs 410.50 each.

Dealer commission has more than doubled in the past six years, with almost yearly increases. Commission was raised from Rs 16.71 per 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. 
 
md. abdul wahab
pgdm 2nd
 



 

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