KL Report
SRINAGAR
After the LPG price hike, petrol and diesel prices are likely to go up marginally as the Oil Ministry considers raising dealers commission by at least 23 paisa and 10 paisa per litre respectively.
LPG price was hiked on Saturday by Rs. 11.42 per cylinder following central government decision to raise the commission paid to the dealers.
The Ministry on Saturday issued orders raising commission paid to LPG dealers from Rs 25.83 to Rs. 37.25 per 14.2-kg cylinder. Sources said that the 44 per cent or Rs. 11.42 per cylinder increase in the commission on the subsidized cooking fuel is being passed on to consumers.
The hike comes within weeks of the government deciding to restrict supply of subsidized cooking gas to 6 cylinders per household in a year. This decision has already spread panic in the common circles of Kashmir because the Himalayan valley is heading towards the harsh winter.
Sources said that a similar exercise is on to raise the commission paid to the petrol pump dealers on sale of petrol and diesel. The concerned Ministry is proposing to raise the commission paid on petrol by 23 paisa to 1.72 and that on diesel by 10 paisa to Rs. 1.01 per litre.
“The hike being considered for petrol and diesel is less than 67 paisa and 42 paisa respectively being demanded by petrol pump dealers in view of their working capital cost going up substantially due to frequent price changes and sharp rise in overheads like electricity charges.” Sources said.
Currently, petrol pump dealers get Rs 1.49 a litre commission on sale of petrol and Rs 0.91 a litre on diesel.
Pump operators have demanded that this be raised to Rs 2.10 a litre on petrol and Rs 1.33 per litre on diesel reasoning that unlike LPG agencies, petrol pumps open 365 days a year on 24 hours basis thereby incurring higher operating cost.
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