Petrol, diesel to cost more as dealer commission goes up

The ministry of petroleum and natural gas today announced an increase in dealer commission on petrol to Rs1.799 from Rs1.499 per litre and on diesel to Rs1.09 from Rs0.91 per liter, thereby raising the prices of the two fuels by 30 paise and 18 paise, respectively.

This will raise petrol price at pumps by 30 paise per litre on petrol and by 18 paise per litre on diesel, official sources said.

The hike would be effective either today or from tomorrow, depending on when the ministry issues a formal letter to oil companies, they said.

Petrol is currently sold at Rs67.90 per litre and diesel at Rs46.95 per litre in Delhi. This would go up to Rs68.2 per litre and Rs47.13 per litre following the commission hike.

The Federation of All India Petroleum Traders had sought increases in commission of 67 paise on petrol and 42 paise on diesel on the back of increase in the cost of operation of pumping stations.

The ministry had, in July 2011, increased dealer commission by 28 paise on petrol and by 15.5 paise on diesel.

The government had, earlier this month, hiked commission paid to LPG distributors to Rs37.25 per 14.2-kg cylinder from Rs25.83 beginning 7 October, thereby adding Rs11.42 per cylinder to deal commission.