| LPG, kerosene subsidies to continue: Deora |
| BS Reporter / New Delhi January 15, 2007 |
| Petroleum Minister Murli Deora today said that prices of liquified petroleum gas (LPG) and kerosene will not be tinkered with and subsidy on these two already-heavily subsidised petroleum products would continue beyond March 31. "Prices of LPG and kerosene will not be increased. The government subsidy on these two products would continue beyond March 31," Deora said on the sidelines of the launch of oil and gas conservation fortnight. The government had set aside a budgetary allocation of Rs 2,900 crore for the 2006-07 financial year as subsidy on sale of LPG and kerosene through public distribution system. The government currently provides a subsidy of Rs 15 per litre of kerosene and Rs 150 per cylinder of LPG. It had targeted to phase out subsidies on the two petroleum products by April 2007. Deora also said that prices of petrol and diesel would be cut only if the Indian basket of crude oil falls below $50 a barrel and remains there "for a month." Petroleum Secretary MS Srinivasan, however, reiterated that the government would review prices of transportation fuels on January 31. India |
