Ram Naik, the Union minister of petroleum and natural gas yesterday said that the subsidy on liquefied Petroleum gas (LPG) will be reduced in phased manner in the next three budgets begining the Union Budget of 2000-01.
Addressing presspersons at 'meet the press' organised by Mumbai Marathi Patankar Sangh, here, Naik said "there are three more budgets to go and the subsidy on LPG for domestic consumers will be reduced in phased manner." The present rates of subsidy for LPG cylinder was Rs 144.
Naik pointed out that the international prices of crude oil have become very volatile, having increased by 134 per cent from Rs 3210 per tonne in February 1999 to Rs 7540 per tonne in January 2000.
"These prices have created considerable imbalances in our economy as compared to the prices in neighbouring countries. An attempt will be made to adjust and rationalise these prices at the time of presenting the budget for 2000-01 on February 29," he added.
The domestic prices of diesel were to have parity with imported crude. Naik pointed out that with firming of crude prices globally, prices of diesel and other petroleum products also have gone up. However, he pointed out that "the diesel prices have reached a saturation prices from mow on will lead to losses as the farmers use diesel in equipment used in agriculture.
