Big disappointment for public day after Diwali! LPG cylinder prices hiked by over Rs 2

Just a day after Diwali, the common man has received yet another bad news, this time it is all about his cooking gas. It has been announced that Domestic cooking gas, LPG cylinder price has been hiked by over Rs 2! The reason behind it is that  the government has increased the commission paid to LPG dealers. 

Oil Ministry has ordered the hike in dealers' 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. 

According to a price notification of state-owned fuel retailers, now, Delhiites will have to pay Rs 507.42 for 14.2-kg subsidised LPG cylinder earlier it was Rs 505.34 respectively. 

In Mumbai, a 14.2-kg LPG cylinder now costs Rs 505.05 while in Kolkata it is priced at Rs 510.70. Whereas in Chennai LPG price is of Rs 495.39. Local taxes and transportation cost are different so the rate of LPG gas will also be different from state to state. 

The official statement says that, "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 ministry order said that the new dealer's commission will be made up of Rs 30.08 establishment charges and Rs 20.50 delivery charges for a 14.2-kg cylinder and for 5 kg cylinder, the establishment charges have been fixed at Rs 15.04 and the rest Rs 10.25 are delivery charges.   

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So if you collect the refills directly from distributor's premises you will not be charged extra amount. The price extension is nothing but the delivery charge which is charged by the LPG dealers on delivery of LPG cylinders.