The current projected annual under recoveries on petrol, diesel, PDS kerosene and domestic LPG are estimated to exceed Rs69,700 crore, said Murli Deora, minister of petroleum and natural Gas in a written reply in the Lok Sabha today.

Out of these under recoveries, Deora said about Rs33,600 crore were on account of domestic LPG and PDS kerosene and as much as 42.7 per cent of the total under recoveries would be met by the government through oil bonds while about a third of the under recoveries would be met by upstream public sector companies.

''''The balance will be absorbed by the PSU oil marketing companies'''' Deora said.

He pointed out that the government had also extended the PDS kerosene and domestic LPG subsidy scheme of 2002 and the Foreign Subsidy Scheme of 2002 for far flung areas for a period of three more years from 1.April.2007 to 31.March.2010. The rate of subsidy admissible under the schemes through the Budget would be the same as applicable for the year 2006-07 - Re.0.82 per litre for PDS kerosene and Rs22.58 per cylinder for domestic LPG.

Deora further stated that PDS kerosene was being supplied at Rs9.09 per litre (in Delhi) as against Rs24.39 per litre (based on April-November 2007 international oil prices).

Similarly, domestic LPG (in Delhi) retailed at Rs294.75 per cylinder against its international equivalent price of Rs. 487.95 per cylinder for April-November 2007. The resulting under recovery was being borne by the government and the public sector oil companies.

International oil prices have increased to record levels and are above $86 per barrel currently. He emphasised that to protect the common man, domestic retail prices of PDS kerosene and domestic LPG have not been increased over last three years.