Rich? Pay more for LPG soon

Petroleum Minister Mani Shankar Aiyar will present options, including raising prices of LPG and kerosene for the rich, to bridge the vast gap between the cost of fuel and their current retail price, to a high-powered panel headed by Prime Minister Manmohan Singh on Friday.

Aiyar will present to the Energy Coordination Committee, various options of bridging the Rs 190 per cylinder deficit in LPG selling price and its cost of production, and ways to narrow the gap between selling price of kerosene and diesel that has been the main cause of adulteration.

"A discussion paper for the Energy Coordination Committee has been prepared detailing different options. It also details implication of the various options. A decision in this regard will be first taken by the ECC and ultimately by the Cabinet," he said.

Declining to give the options suggested by the petroleum ministry, Aiyar said his ministry was not "pushing" for a hike in domestic cooking gas or kerosene price. "It is the job of the ministry of petroleum and natural gas to keep all prices of sensitive petroleum products under constant reveiw," he said.

The petroleum ministry is toying with the idea of having dual pricing for LPG and kerosene - two different rates for people living below the poverty line and those above it.

The ECC has asked Aiyar to make presentations on three items - issues arising from murder of IOC officer Manjunath and steps to curb adulteration of diesel with kerosene; pricing of petroleum products; and domestic oil production.