The domestic prices of liquefied petroleum gas (LPG) and kerosene will not be revised upwards in the face of war clouds hovering over Iraq. On the contrary, the government has decided to bring down the deposit money for LPG cylinders.
This was stated by Petroleum Minister Ram Naik here today while addressing a press conference after the signing of a memorandum of understanding between the Indian Oil Corporation and the Railways for production and use of bio diesel.
The minister said LPG and kerosene are subsidised items. There was no immediate proposal for any increase in the prices of LPG and kerosene, Naik said.
He said there was a likelihood of further reduction in the deposit money for LPG cylinder.
The deposit money, which was Rs 900 earlier, has already come down to Rs 700 per cylinder after oil companies had floated tenders in the previous year.
The new tenders floated recently showed that there could be further reduction in the deposit money, the benefit of which would be passed on to the consumer, Naik said, adding the government was likely to announce the new deposit money in a couple of days.
Though international crude prices had been volatile and had gone up over 50 per cent from 20 dollars per barrel to 32 dollars per barrel, the government had devised a scheme wherein oil companies would review the price situation every 15 days, he said.
Before the dismantling of administered price mechanism in April 2002, never in the past petrol and diesel prices had been reduced, he said.
