Domestic LPG under-realisation expected at Rs50,000 crore

Lepetkata (Assam): Petroleum minister Murli Deora today said that under-recoveries on the price of domestic LPG and kerosene through the public distribution system (PDS) was likely to be around Rs50,000 crore during the current financial.

LPG is currently being sold at a subsidy of Rs177 per cylinder, while kerosene sells at Rs17 per litre below the cost price.

Deora said that in spite of the substantial increase in the price of these fuels in the international market during the last three years, the government had not increased the price of kerosene sold through the public distribution system and of domestic LPG.

Speaking at the foundation laying ceremony of the Rs5460-crore Assam gas cracker project inaugurated by the prime minister at Lepetkata in Assam (See: PM lays foundation of Rs5,460 crore Assam gas cracker project), Deora said that the government ws committed to provide kerosene and LPG at affordable prices to protect the interests of weaker sections of the society.

He appreciated the prime minister''s support on the issue of oil bonds, which would help partly compensate oil-marketing companies for selling fuel at subsidised rates, while being able to maintain their financial stability.