LPG prices go up as oil marketing companies revise distributors’ commission

The meagre increase, given after three years, should not have been passed onto customers, says a distributor

State-run Oil marketing companies (OMCs) on Thursday revised cooking gas prices by ₹3 per domestic 14.2 kg cylinder and by ₹8 per commercial 19 kg cylinder.

Sources attributed the rise to an increase in distributor commission for both categories, which has been passed onto consumers. At a time when one domestic cylinder in Chennai is priced at ₹1018.50 after hike, distributors said they were unhappy that the increase had been passed onto consumers.

“We are no doubt spending more on loads and expenses including salaries, transport and other overheads. The meagre increase, which has been given after three years, should not have been passed onto customers, especially at this point of time,” said a distributor. A 19Kg cylinder is now priced at ₹2,507.  

S.A. Ponnusamy of Tamil Nadu Milk Dealers, Employees Welfare Association, called for a roll back of the hike. He said this was the second hike this month and these increases that added to the burden of the common man was akin to slow poison.  

Meanwhile, petroleum dealers have been waiting for a revision of their commissions for over five years. “When petrol/diesel rates were at around ₹60/litre, we were given commissions of ₹3/litre of petrol and ₹2 per litre of diesel. Now petrol stands at ₹111 a litre and diesel ₹101 a litre. While we welcome the increase given to LPG distributors, we too would like a proportionate hike in margins,” said a dealer.