Cooking Gas Price hiked again

With increasing the price for the second time in a single month, the problem for common man doesn’t seems to cease. This time, it is due to commission hike. 

Domestic cooking gas LPG prices have been hiked by over Rs. 2 per cylinder after the government increased the commission paid to LPG dealers. A 14.2-kg subsidised LPG cylinder in Delhi will now cost Rs. 507.42 as against Rs. 505.34 previously, according to a price notification of state-owned fuel retailers. This followed an order of the Oil Ministry that raised the dealer’s commission.

In that order, the ministry said the domestic LPG distributors’ commission for 14.2-kg cylinder and 5-kg cylinder was last fixed 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 said.

This is the second increase in rates this month, the earlier one being on November 1, when prices went up by Rs. 2.94 per cylinder because of tax component on base price.

Since June rates have gone up every month because of the GST paid on higher base price and cumulatively prices have risen by Rs. 16.21. Though government gives subsidy for 12 cylinders in a year. The subsidy gets credited to the bank account of the user. But, the subsidy is fixed and increase in price means increase in gross price the user has to pay. So, headache increased for LPG users. Though it would also increase the rate of people switching towards domestic PNG connections.