NEW DELHI: Petrol price was on Saturday hiked by 29 paise per litre and diesel by 20 paise after government decided to increase commission paid to petrol pump dealers.
Petrol in Delhi from today costs Rs 68.19 per litre as against Rs 67.90 previously. Similarly, diesel rates have been hiked to Rs 47.15 per litre from Rs 46.95, industry sources said. Rates will vary in states due to differential in local sales tax or VAT rates.
Petrol price hike varies from 29 paise to 37 paise (in Bangalore), while diesel rates vary from 20 paise to 24 paise a litre.
The petroleum ministry late last night issued orders increasing the dealers commission on petrol from Rs 1.49 per litre to Rs 1.78 a litre. The same on diesel has been hiked by 17.7 paise -- from 91 paise to Rs 1.08. After taking into account the incidence on VAT, the hike in diesel comes to 20 paise, sources said.Sources said the decision to hike dealers commission was taken on Thursday but orders were issued only last night. The increase in dealers commission is first since July 2011.
During that period, the commission was hiked by 28 paise on petrol and by 15.5 paise on diesel. Federation of All India Petroleum Traders General Secretary Ajay Bansal said the hike falls short of their demand for 67 paise increase in commission on petrol and 42 paise on diesel considering steep hike in operating cost of a petrol pump.
"Few of our operating costs like running pumps on "Few of our operating costs like running pumps on generators, free services (like air and water) and increase in evaporation, seem to have not been taken into account while calculating the proposed commission," Bansal said. The Ministry, he said, has assured to look into these in two months time.
The government had earlier this month hiked commission paid to LPG distributors by Rs 11.42 per cylinder. Subsidised LPG in Delhi now costs Rs 410.42 per cylinder, up from Rs 399. The commission paid to LPG dealers increased from Rs 25.83 per 14.2-kg cylinder to Rs 37.25 with effect from October 7.
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