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Home > Business > PTI > Report

Oil marketing cos may hike LPG price: Naik

March 11, 2003 12:42 IST

The government said on Tuesday that oil marketing companies are considering price revision of domestic LPG due to increase in international prices.

"It is for the oil companies to decide on the increase in LPG prices," Petroleum and Natural Gas Minister Ram Naik said in Rajya Sabha during Question Hour.

In reply to a query, he said the average subsidy per cylinder on domestic LPG during 2000-01 and 2001-02 was Rs 150.55 and Rs 115.63 respectively.

He said the government had moved to the flat rate of subsidy due to 80 per cent increase in international gas prices from $197 per metric tonnes to $370 dollars per metric tonnes.    From April 1, 2002, subsidy on domestic LPG is being provided at the flat rate of Rs 67.75 per cylinder, he said.

Changes in the consumer price of domestic LPG after providing for the flat rate of subsidy are to be made by the oil marketing companies.

Naik said even countries like Nepal and Sri Lanka charged higher prices of LPG from their consumers.

In reply to a query from Manmohan Singh (Cong), Naik said the government tried to insulate the consumer from very steep increase in LPG prices by reducing excise or customs duties.



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