Government on Tuesday hiked the prices of subsidised cooking gas (lPG) cylinders by Rs3.46 per bottle on the heels of the Petroleum Ministry raising the commission paid to dealers by over 9 per cent.
The hike has come into effect from Tuesday itself.
"The retail selling price of domestic lPG has been increased by Rs 3.46 per cylinder after the commission given to dealers was raised by the same proportion," an industry source confirmed to The Pioneer.
lPG in Delhi costs Rs 410.50 per 14.2-kg capacity cylinder and now after the increase it will cost Rs 413.96.
The last revision in cooking gas prices happened in October last year when because of an increase in dealers' commission, the rates were raised from Rs 399 per cylinder to Rs 410.50.
Also, dealers' commission on 5-kg lPG cylinder has been increased by Rs1.73 to Rs20.36 per bottle.
A 5-kg lPG cylinder costs Rs 353 in Delhi currently. Sources said that the annual revision in dealers' commission is being proposed keeping in view the increase in expenses like salary and wages.
They added that no revision in the additional distributor commission of 75 paisa paid on sale of non- subsidised sale of 14.2-kg cylinder was required for the time being. The 75 paisa is over and above the commission of Rs40.71.
Non-subsidised lPG is sold at market price of Rs 1,017.50 per cylinder in Delhi.
lPG dealers' commission was last revised on October 7, 2012 when it was raised from Rs25.83 per 14.2-kg cylinder to Rs37.25. The same for 5-kg cylinder was hiked from Rs13.30 to Rs 18.63 per bottle.
The commission has more than doubled in the past six years with almost yearly increases. The commission was raised from Rs16.71 per 14.2-kg lPG cylinder to Rs 19.05 on March 1, 2007; to Rs 20.54 on June 4, 2008; to Rs21.94 on June 30, 2009 and to Rs25.83 per bottle on July 1, 2011.