LPG price hiked by over Rs 2 after rise in dealers' commission

NEW DELHI: Domestic cooking fuel LPG costs have been hiked by over Rs 2 according to cylinder after the government increased the fee paid to LPG dealers. A 14.2-kg subsidised LPG cylinder in Delhi will now cost Rs 507.42 as in opposition to Rs 505.34 up to now, in accordance to a price notification of state-owned gas retailers.

This adopted an order of the oil ministry that raised the broker's fee. In that order, the ministry stated the home LPG distributors' fee for 14.2-kg cylinder and Five-kg cylinder was last mounted at Rs 48.89 and Rs 24.20 respectively in September 2017.

"Pending finalisation of De-Novo Study for revision of LPG distributors' commission and taking into consideration the increase in transportation costs, wages etc, it has been decided to revise the distributors' commission to Rs 50.58 per 14.2 kg cylinder and Rs 25.29 per 5 kg cylinder as an interim measure," the order stated.

This is the second build up in rates this month, the sooner one being on November 1, when costs went up by Rs 2.94 according to cylinder on account of tax part on base price.

Since June rates have gone up each and every month on account of the GST paid on upper base price and cumulatively costs have risen by Rs 16.21.

In Mumbai, a 14.2-kg LPG cylinder now prices Rs 505.05 whilst in Kolkata it is priced at Rs 510.70. Chennai has a value of Rs 495.39.

Rates vary from state to state relying on native taxes and transportation cost.

The new broker's fee might be made up of Rs 30.08 status quo fees and Rs 20.50 supply fees for a 14.2-kg cylinder. For Five kg cylinder, the status quo fees have been mounted at Rs 15.04 and the remaining Rs 10.25 are supply fees, the ministry order stated.

Customers who acquire their refills without delay from distributor's premises will proceed not to be charged for supply, it stated.

Before the hike, the broker's fee was made up of Rs 29.39 status quo fees and Rs 19.50 supply fees for a 14.2-kg cylinder. For Five kg bottle, the status quo fees had been Rs 14.70 and supply fees Rs nine.50.

All LPG customers have to buy the gas at marketplace price. The executive, however, subsidises 12 cylinders of 14.2-kg each according to families in a 12 months by providing the subsidy quantity without delay in financial institution accounts of customers.


This subsidy quantity varies from month to month relying at the adjustments within the reasonable global benchmark LPG rate and foreign currency rate.


When global rates transfer up, the government supplies the next subsidy. But as according to tax regulations, GST on LPG needs to be calculated on the marketplace rate of the gas. The executive would possibly choose to subsidise part of the price but tax should be paid at marketplace rates.


This has resulted in an build up in price.


On November 1, the non-subsidised or marketplace price LPG rates went up by Rs 60 according to cylinder to Rs 939. Because of the upward push in broker's fee, the price is now Rs 942.50 according to 14.2-kg cylinder.
LPG price hiked by over Rs 2 after rise in dealers' commission LPG price hiked by over Rs 2 after rise in dealers' commission Reviewed by kailash soni on November 09, 2018 Rating: 5
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