Maharashtra Government Doubles Kerosene Dealer Commission to Address LPG Shortage
In a significant move to mitigate the ongoing liquefied petroleum gas (LPG) shortage, the Maharashtra government has announced a major revision in kerosene distribution policies. The state's Food, Civil Supplies and Consumer Protection Department has officially doubled the commission paid to retail kerosene dealers across Maharashtra.
Substantial Commission Hike for Retail Dealers
The retail kerosene dealer commission has been increased from Rs675 per kilolitre to Rs1,350 per kilolitre, representing a 100% enhancement. This decision comes as part of a temporary resumption of kerosene distribution throughout the state, aimed at providing an alternative fuel source during the current LPG scarcity caused by geopolitical tensions.
Comprehensive Transport Rate Revisions
Alongside the retail commission increase, the government has implemented substantial changes to kerosene transport rates for wholesale dealers. Key modifications include:
- A 40% increase in incidental non-diesel expenses over rates last revised on July 10, 2013
- Implementation of a diesel price-linked escalation mechanism
- Introduction of an extraordinary allowance of 0.25% of the prevailing ex-depot rate to compensate for temperature variation and handling losses
Central Government Allocation and Implementation
The kerosene distribution resumption follows a central government order dated March 12, which allocated 3,744 kilolitres of kerosene to Maharashtra as an alternative fuel. The state government has established a detailed escalation formula for diesel-linked cost increases, based on the difference between diesel prices on April 1, 2012, and April 1, 2026.
This formula accounts for a vehicle fuel average of 3.5 kilometres per litre and assumes a standard tank lorry capacity of 12 kilolitres. District collectors and the Controller of Rationing and Director of Civil Supplies in Mumbai have been empowered to revise kerosene transport rates annually on April 1 using this formula, based on prevailing diesel prices on that date.
Immediate Implementation Directives
All district collectors and the Controller of Rationing have received directives to immediately issue revised public distribution kerosene rate notifications for their respective districts. These notifications must incorporate:
- The doubled retail commission rates
- Revised wholesale dealer commissions
- Updated Goods and Services Tax (GST) calculations
- New transport rates including the extraordinary allowance
- Other incidental costs as specified
Copies of these revised notifications must be sent to the state government for record-keeping and monitoring purposes. This comprehensive approach ensures that kerosene distribution can resume effectively across Maharashtra, providing much-needed relief to consumers affected by the LPG shortage while ensuring fair compensation for dealers and transporters involved in the distribution chain.
