Subsidised LPG rate hiked by Rs 3 per cylinder

Hike due to revision in commission paid to dealers

Subsidised cooking gas (LPG) rates have been hiked by Rs 3 per cylinder after the government raised the commission paid to dealers.

The commission paid to dealers was last week hiked by Rs 3 per 14.2-kg cylinder to Rs 43.71. Consequently, retail selling price of subsidised LPG too have been increased in the same proportion, officials said.

Dealers' commission was last revised in December 2013 when it was hiked by Rs 3.46 per cylinder to Rs 40.71.

The increase in commission - which as per practice is passed on to consumers - has been effected from October 23.

Subsidised LPG in Delhi now costs Rs 417 per 14.2-kg cylinder as against Rs 414 previously.

In Mumbai, subsidised LPG will cost Rs 452 per 14.2-kg cylinder as against Rs 448.50 previously.

Prior to the December hike in LPG rates, price of cooking gas was raised in October 2012 when because of an increase in dealers' commission the rates were raised from Rs 399 per cylinder to Rs 410.50.

Dealers' commission has also resulted in the rate of non-subsidised LPG, which a consumer buys after consuming his quota of 12 cylinders at below-market rates, being hiked to Rs 883.50 per 14.2-kg bottle from Rs 880 previously.

The decision will benefit 13,896 LPG distributors across the country.