The government yesterday annou-nced new prices for high speed diesel (HSD), linking them to the import parity price. As a result, HSD prices have come down by about five paise per litre in Delhi, Calcutta and Chennai, and by about six paise per litre in Mumbai.
The government also increased dealers commissions, ranging from a hike of Rs 2.50 per 14.2 cylinder of liquefied petroleum gas (LPG) to six paise per litre of petrol and deisel. The revised HSD prices, which came into effect from midnight, take the hike in dealers commission into account .
While revising prices of certain petroleum products on September 1, the government had announced that HSD prices would be linked to the import parity price and revised on a monthly basis. In accordance with this decision, the Oil Coordination Committee worked out revised HSD prices, based on prices in the Gulf markets in September. In view of the price trend in the international market, the current revision resulted in a reduction in HSD prices.
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According to an official press release, such adjustments of HSD prices on import parity basis would continue so that domestic prices stay in line with international prices.
On dealers commission, the government has decided to abolish the existing slab system of commission for motor spirit (petrol) and LPG with immediate effect. The slab system for HSD will be abolished in phases.
The revised rates of commission for dealers are Rs 409/kilolitre for MS 87; Rs 446/KL for MS 93; Rs 222/KL for HSD (slab-I); Rs 168/KL for HSD (slab-II) and Rs 126/KL for superior kerosene oil. For wholesalers, the rate of commission will be Rs 69/KL for low deisel oil, Rs 112/KL for furnace oil; Rs 112/KL for LPG and Rs 10.50 for a 14.2 kg cylinder of LPG.
The commission for higher capacity cylinders of LPG would be proportionately higher in relation to the 14.2 kg cylinder commission.
To minimise the impact of increase in dealer commission on consumers, the government has decided not to pass on to the current increase in commission in respect of LPG and petrol to consumers.
Dealers are required to pay a licence fee to oil companies towards the investments made by the latter at retail outlets. Keeping in view the increases in the cost of such investments, the government has decided to effect certain increases in licence fee.
LPG distributors will be required to continue making home deliveries to their customers.