Incentives on commercial LPG cylinders withdrawn, a setback to hotels

NEW DELHI: The oil companies have withdrawn incentives on commercial cooking gas cylinders. With this, the dealers will have to sell the cylinders at the market price itself. Following the action, the hotels will be forced to buy cooking gas at the new price. Dealers used to supply commercial cylinders to hotels at a lower rate than the market price due to incentives.

Currently, oil companies have given incentives of up to Rs 240 to dealers who takes more stock. With the withdrawal of the incentive, the selling price of a 19 kg commercial cylinder has gone up to Rs 1748. Earlier the price was Rs 1508.

At the same time, the agency owners opined that the withdrawal of the incentives would benefit the distribution agencies and increase the sales for the distributors. They also hope that this will put an end to the distributors way of increasing discounts by lowering prices.