Cooking gas supplied to kitchens at subsidised rate is costlier by Rs 3 a cylinder as the government raised the dealer's commission on the day of Diwali.
Kerosene will also be costlier by less than a rupee soon as the government has decided to raise kerosene dealers' commission. The oil ministry has not disclosed the quantum of the hike.
Kerosene, which is called the fuel of the poor, is currently sold at Rs 14.96 a litre in Delhi. The recent decision to raise cooking gas distributors' commission would help 13,896 dealers in the country who serve cooking gas to 16.62 crore customers. "In fact, this hike was long pending and it will only cover the increase in labour and fuel costs in delivering cylinders to customers," said a dealer of Indian Oil Corporation ( IOCBSE 0.95 %).
An executive of Bharat Petroleum Corporation Ltd ( BPCLBSE 1.42 %) said the company has raised dealer commission for liquefied petroleum gas ( LPG) from Rs 40.71 per cylinder to Rs 44.06 per cylinder. The dealer's commission has two components, establishment charges and delivery charges. While establishment charges have risen from Rs 24.24 per cylinder to Rs 26.06, delivery charger have been increased fromRs 16.47 per cylinder to Rs 18. State oil marketing companies have absorbed about 35 paise per cylinder of the hike and passed on onlyRs 3 per cylinder increase to the customer.
Source: The Economic Times
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