Govt. hikes LPG dealers commission - Fusion - WeRIndia

Government hikes LPG dealers commission

Government hikes LPG dealers commission

As the government hiked the commission of LPG dealers, the price of LPG cylinders has increased by over ₹2 per cylinder.

The price of 14.2-kg subsidised LPG cylinder in Delhi was ₹505.34 earlier which now becomes ₹507.42.

The state-owned fuel retailers revealed this information.

The ministry fixed the domestic LPG distributors’ commission for 14.2-kg cylinder and 5-kg cylinder at ₹48.89 and ₹24.20 respectively in September 2017.

Since the revision on hiking the LPG distributors’ commission was pending, it has been decided to revise the commission.

The distributor’s commission was increased considering the increasing transport costs and wages.

The current commission rates have been fixed per 14.2-kg cylinder and 5-kg cylinder at ₹50.58 and ₹25.29 respectively.

However, the LPG cylinder rates have been increased with the hike in commission. This is the second time that the rates have been increased in this month.

LPG cylinder prices had gone up by ₹2.94 on November 1. This was due to tax impact as the base price had been changed.

The current market price of a non-subsidised 14.2-kg cylinder is ₹939 which will be ₹942.50 with the rise in dealer’s commission.

The prices of LPG cylinders have been rising since June. The rates vary with each state based on transportation cost and local taxes.

For instance, the rates of LPG cylinder in various cities are as follows: It is ₹505.05 in Mumbai, ₹510.70 in Kolkata and ₹495.39 in Chennai.

The commission of dealers includes establishment charges and delivery charges. They are ₹30.08 and ₹20.50 for a 14.2-kg cylinder respectively whereas ₹15.04 and ₹10.25 for a 5-kg cylinder.

Those who collect their refill cylinders from distributor’s premises should not be charged for delivery, says the ministry.

Image credit: Image by linushajan from Pixabay (Free for commercial use)

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