Guwahati: The price of commercial cylinders has been slashed by Rs. 135 from today, June 1, onwards. However, domestic cooking gas continues to remain the same without any changes.

LPG cylinder, both domestic and commercial, has been witnessing a monthly fluctuation in price for the past several months. With today’s slashing, a 19 kg commercial cylinder will now cost Rs. 2,387 in Guwahati.

On the other hand, domestic cooking gas saw a substantial hike of Rs. 50 last month. The price of commercial LPG has been reduced by Rs. 135 from today. However, there has been no change in the price of domestic cooking gas.

Presently, a 14.2 kg LPG cylinder costs Rs. 1048.50 in Guwahati, and the 5 kg refill was also increased by Rs.18 last month.

Depending on the price of benchmark fuel in the previous month, the price of LPF is revised on the first day of every month.

Higher prices leading to lesser usage of LPG:

Probin Hazarika, Secretary of the Northeast Indane Distributors Association, told Business Northeast that with the constant hike in prices of fuel, there has been a downward trend in the usage of LPG. “We have lost many customers, especially in the rural areas." For a person from the lower-income group in the rural areas, it is easier to procure wood for fire than buying cooking gas.”

Reportedly, for an average household, wood for the fuel required for a month can be procured at an expense of Rs. 500 to Rs. 600. Whereas a domestic LPG cylinder costs around Rs. 1000.

“Why should I buy cooking gas when I can use wood at a much cheaper rate?" Expenses on all household items have increased. Although we got a cylinder under the Pradhan Mantri Ujjwala Yojana Scheme, the subsidies have stopped,’ said a former beneficiary from Dergaon."

Hazarika, who has a distributor at Dergaon said that the booking has declined to a great extent. “The subsidy that was earlier given to the beneficiaries has been stopped since the end of 2019. With rising prices and no subsidy, cooking gas is a luxury that is not affordable by all.”

Several Indane distributors are incurring losses due to limited commissions:

The Northeast Indane Distributors Association informed that several distributors are currently incurring major losses with no hike in the commission and the constant hike of LPG prices. “With the increase in price our investments have also increased. But there is no remuneration. The commission of the distributors was last increased in 2019 and has been constant since then. Recently, the government has announced a marginal rise in the commission,” said Hazarika.

“Only those few distributors who get a daily sale average of 1000 to 1500 cylinders earn a good profit. The rest are just surviving or are at a loss altogether. Now the bookings are also limited,” he added.

Ashok Raja Baishya, president of the association, said, “Last month the overall commission was increased by Rs. 3. But the commission has several aspects, like administrative commission, delivery charges, etc. So the distributor’s final hike in commission is almost negligent. "

Presently, the domestic commission excluding GST is Rs. 67.13 per cylinder and including GST, it further comes down to Rs. 63.77.

“The new circular is yet to be received. Hence it is not yet implemented. At this rate the distributors will be at a complete loss,” he added.