Fuel retailers add Rs11.42 per LPG cylinder to pay higher dealer commission

Fuel marketing companies today announced an increase of Rs11.42 per cylinder of liquefied petroleum gas (LPG), following a government decision to raise commission paid to dealers.

The government decided to raise the per cylinder commission paid to gas distributors in order to compensate them for the loss of business on account of lower sales turnover following the six-cylinder ceiling on household supplies of subsidized LPG gas.

Simultaneously, there is also an increase of Rs12.17 per 14.2 kg cylinder in the commission paid on non-subsidised LPG to Rs38 per cylinder, official sources said.

Accordingly, a non-subsidised LPG cylinder will now cost Rs921.5 in Delhi, up from Rs883.5 at present.

Fuel retailers are also expected to increase prices of petrol and diesel as well with the petroleum ministry raising dealer commission by at least 23 paise and 10 paise, repectively, per litre.

The petroleum ministry on Friday issued orders raising commission paid to LPG dealers by 44 per cent to Rs37.25 per cylinder from 25.83 per 14.2-kg cylinder, and decided to pass on the increase fully to the consumer.