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Subsidies on LPG, kerosene to stay: Naik

Subsidy on LPG and kerosene would continue in spite of deregulation of energy prices from March 2002, Union Minister for Petroleum and Natural Gas Ram Naik said on Saturday.

The minister, who was addressing members of Bengal Chamber of Commerce and Industry in Calcutta, said the government would continue to provide subsidies to LPG and kerosene of 15 per cent and 33.33 per cent respectively.

However, in case of other fuels like petrol and high speed deisel, the government would withdraw all subsidies with the dismantling of the administered price mechanism.

Commenting on the oil import bill, Naik said that last year, it was to the tune of Rs 800 billion, which went up due to rise in prices of Brent crude.

The minister said that volatility in international prices was responsible for the high oil import bill.

India's 70 per cent oil requirements were met from imports, he said.

He said that although the oil pool deficit was of the order of Rs 130 billion at the moment, there was no proposal to hike prices of petroluem products at present.

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