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LPG price hiked by Rs 11.42 per cylinder to raise dealers' commission

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Oct 06, 2012 at 04:00pm IST

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New Delhi: The government on Saturday hiked the prices of LPG by Rs 11.42 per cylinder, saying that this was done to raise the dealers' commission. The gas dealers had reportedly wanted a single price and commission of Rs 65 per cylinder, the same as on commercial cylinders.

The National Federation of LPG Distributors of India (NFLDI), which represents around 10,500 cooking gas sale agencies, had asked the Centre to make the LPG pricing uniform and allow a direct transfer of subsidy to its intended beneficiaries.

"The distributors who were already struggling due to the menace of dual pricing, inadequate commission, ineffective cylinder seal, forced VIP off-takes and supply system that is not fool proof, are now being forced to except the newly implemented triple rate policy without giving adequate commission," it had said in a press statement.

For the consumer, subsidised LPG in Delhi will now cost Rs 410.42 per cylinder, up from Rs 399. The hike comes within weeks of the government deciding to restrict supply of subsidised cooking gas to 6 cylinders of 14.2-kg size per household in a year. The remaining supplies would have to be sourced at market rates.

Officials said the commission paid on market price or non-subsidised LPG too has been raised by Rs 12.17 to Rs 38 per cylinder. Accordingly, a non-subsidised LPG cylinder price

will go up from Rs 883.5 to Rs 921.5. A similar exercise is on to raise commission paid to petrol pump dealers on sale of petrol and diesel. The Ministry is proposing to raise commission paid on petrol by 23 paisa to 1.72 and that on diesel by 10 paisa to Rs 1.01 a litre.

The hike being considered for petrol and diesel is less than 67 paisa and 42 paisa respectively being demanded by petrol pump dealers in view of their working capital cost going up substantially due to frequent price changes and sharp rise in overheads like electricity charges.

With Additional Inputs from PTI

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