The government on Tuesday increased the distributors' commission on domestic cooking gas (LPG) by 38 paise on a 14.2 kg cylinder and by 20 paise on a 5 kg cylinder, resulting in an equivalent increase in the prices of the fuel.
LPG prices will go up from October 1, when these changes come into effect, an official release said in New Delhi.
A 14.2 kg cylinder of LPG in Delhi costs Rs 241.
Petroleum Minister Ram Naik increased the rate of commission from Rs 16.33 to Rs 16.71 on a 14.2 kg cylinder and from Rs 8.40 to Rs 8.60 on a 5 kg cylinder. The increase comes to 2.33 per cent and 2.38 per cent, respectively.
The revision in commission has been made in accordance with the neutralisation formulae taking into account the factors such as changes in wages of the workers, product cost and the All India Consumer Price Index, Naik said.
"This revision has been effected taking into consideration the recommendations made by the oil industry," he said, adding the distributors commission on LPG was last revised on November 1, 2002.
It may be recalled that the government had earlier this month decided not to increase prices of domestic LPG and kerosene for public distribution system in spite of the surge in crude oil prices.