M A I N   N E W S

Kerosene, LPG subsidy to continue

New Delhi, March 28
The government will continue to subsidise kerosene and cooking gas for five more years even as the administered price mechanism (APM) is dismantled from April 1.

There will be a specified flat rate of subsidy on the PDS kerosene and domestic LPG in the deregulated scenario, to be phased out in the next three to five years, Petroleum Minister Ram Naik said here today.

“The consumer will benefit if the prices go down and will have to pay more in case these increase,” Mr Ram Naik said here today while notifying the details of phased programme of dismantling of the APM.

At present, the subsidy on kerosene is about Rs 3 per litre which is approximately 30 per cent whereas the subsidy on LPG is about 34 per cent, Rs 90 per cylinder. The minister said in tune with the 1997 resolution, the subsidy on kerosene would be around 33 per cent and on LPG around 15 per cent. UNI