New Delhi, Oct 27: Petrol price was hiked today by 29 paise per litre and diesel by 20 paise after government decided to increase commission paid to pump dealers.
Petrol in Delhi from tPetrol price was hiked today by 29 paise per litre and diesel by 20 paise after government decided to increase commission paid to pump dealers.oday 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 Value Added Tax (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.
Late last night the Petroleum Ministry 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 generators, free services (like air and water) and increase in evaporation, seem to have not been taken into account while calculating the proposed commission," Mr Bansal said.
The Ministry, he said, has assured to look into these within two months.
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.
