Budget subsidy on LPG, kerosene brought down by 50 pc: Govt

New Delhi, Mar 9: The Budget subsidy on domestic cooking gas (LPG) and PDS kerosene has been brought down by about 50 per cent in 2004-05, the Government informed the Lok Sabha today (Mar 9, 2006).

While the subsidy on each LPG cylinder was brought down from Rs 45.18 in 2003-04 to Rs 22.58 in 2004-05, the similar component on PDS kerosene fell from Rs 1.65 a litre to Re 0.82, Minister of State for Petroleum and Natural Gas Dinsha Patel said in a written reply.

However, due to the steep rise in international prices of sensitive petroleum products, oil marketing companies (OMCs) have been modulating the price increase in petrol and diesel also besides maintaining the prices of subsidised products like domestic LPG and PDS kerosen, he said.

As a result, OMCs have suffered under-recoveries in the sale of these products.

Under-recoveries on PDS kerosene and domestic LPG nearly doubled from Rs 9,274 crore in 2003-04 to Rs 17,842 in 2004-05.

While there was no under-recoveries on petrol and diesel in 2003-04, these were placed at Rs 2,304 in 2004-05.

The total under-recoveries more than doubled from Rs 9,274 crore in 2003-04 to Rs 20,146 crore in 2004-05, according to provisional figures.

UNI