LPG cylinder prices hiked for second time this month

RANCHI: LPG cylinder prices have been increased by Rs 3 for the second time this month due to the petroleum ministry's decision to increase the commission paid to LPG dealers.
A letter in this regard was issued by the ministry of petroleum and natural gas which mandated revision of cylinder prices across the country and came into effect from November 7. "If you have a 14.2kg subsidized LPG cylinder, it will now cost you Rs 1,000.50 in Ranchi which was Rs 998.50 on November 1 after monthly revision.The monthly revision already had put a burden of Rs 62.50 on consumers as the same cylinder was Rs 936 in October 2018," an official said.
LPG prices are revised on the first day of every month to check any increase in international prices so that the government can absorb any increase in international prices of LPG as subsidy. However, the tax component is always collected by the petroleum company at market rates which leads to the inflation of rate. The price difference of Rs 62.50 between October 1 and November 1 justifies the tax component.
"After finalization of De-Novo study for revision of LPG distributors' commission taking into consideration the increase in transportation costs wages etc, it has been decided to revise the distributors' commission to Rs 50.58 per 14.2kg cylinder and Rs 25.29 per 5kg cylinder as an interim measure," said the letter issued by the ministry.
Speaking to TOI, chief area manager of Indian Oil Corporation limited (IOCL), Harish Deepak said " The price rise on November 1 was a routine exercise which is carried out due to fluctuations in rate of crude petroleum in International market. However the rise on seventh has been done as a pending agreement between government and dealers association has gone through."