With Finance Minister Jaswant Singh failing to announce duty concessions for the petroleum sector during his reply to the debate on the Budget for 2003-04, an increase in the prices of domestic liquefied petroleum gas (LPG) looks imminent.
Senior officials of the petroleum ministry are learnt to be working with oil marketing companies to determine the quantum of price-hike. An indication to the price-hike was also given by Petroleum Minister Ram Naik during question hour in the Rajya Sabha today.
He said oil marketing companies were considering price revision of domestic LPG due to increase in international prices.
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"It is for the oil companies to decide on the increase in LPG prices," he said.
In reply to a query, he said the average subsidy per cylinder on domestic LPG during 2000-01 and 2001-02 was Rs 150.55 and Rs 115.63, respectively.
The minister said the government had moved to the flat rate of subsidy. From April 1, 2002, subsidy on domestic LPG is being provided at a flat rate of Rs 67.75 per cylinder.
He said the price-hike had become imminent due to 80 per cent increase in international gas prices from $197 per metric tonne to $370 per metric tonne.
Naik said even Nepal and Sri Lanka charged higher prices of LPG from consumers.