LPG prices have been hiked by over Rs 2 per cylinder after the government increased the commission paid to LPG dealers. 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.
According to a price notification of state-owned fuel retailers, now a 14.2-kg subsidised LPG cylinder in Delhi will cost Rs 507.42 as against Rs 505.34 previously.
The ministry said that Rs 48.89 and Rs 24.20 is the domestic LPG distributors commission for 14.2-kg cylinder and 5-kg cylinder respectively.
The order said, “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.”
Rates differ from state to state depending on local taxes and transportation cost. A 14.2-kg LPG cylinder in Mumbai now costs Rs 505.05 while in Kolkata it is priced at Rs 510.70. Chennai has a price of Rs 495.39.
The order also stated that customers who collect their refills directly from distributor’s premises will continue not to be charged for delivery.
The government provides a higher subsidy when international rates move up. But as per tax rules, GST on LPG has to be calculated at the market rate of the fuel.