Distributor commission for LPG hiked to ₹73 per cylinder
NEW DELHI : The petroleum ministry has increased the LPG distributors’ commission to ₹73.08 per cylinder from ₹64.84 fixed in May last year. In a letter dated 3 October, sent to the oil marketing companies (OMC), the ministry, however, said that the revision in the distribution commission would not result in a revision in retail LPG prices. It said the government approved the “revision of distributor’ commission to ₹73.08 per 14.2 kg cylinder (establishment charges: ₹39.65 and delivery charges: ₹33.43) and ₹36.54 per 5.0 kg cylinder (establishment charges: ₹19.82 and delivery charges: ₹16.72)".
In May last year, the ministry had set the commission for the 14.2 kg domestic cylinder at ₹64.84. The new notification said the ministry has also approved the conduct of a fresh study to recommend a revised methodology for the determination of distribution commission for domestic LPG. The revision comes at a time when the government has been announcing measures to curb LPG prices in view high retail inflation and upcoming state elections.
The Union cabinet on 4 October approved an additional subsidy ₹100 on cooking gas for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiairies taking the total subsidy to ₹300 for over 95 million beneficiaries. Further, last month the cabinet approved slashing LPG prices by ₹200 per cylinder. PMUY beneficiaries pay ₹603 per cylinder of cooking gas which normally costs ₹903 in the national capital.
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