There is a limit to subsidy on LPG, kerosene: PM

New Delhi, Aug 15: Prime Minister Manmohan Singh today warned that rising international price of oil was making it difficult for the government to continue subsidy on LPG and kerosene.

There is a limit to which the government can go on continuing the subsidy on LPG and kerosene, Dr Singh said in his Independence Day Speech.

''Prices of kerosene and LPG have not been raised. But there is a limit to which we can go on subsidising the consumption of petroleum products in the face of rising import costs,'' he said.

He, however, said the subsidy on LPG and kerosene was curtailing expenditure on important development schemes.

''How much more can the government treasury bear this burden? At some point, this will affect our ability to spend on other important development programmes,'' Dr Singh said.

On the increase in the prices of essential commodities, he said he understood the concern of ''each of our families'' over the situation.

''Let me assure you that we will do whatever is required to keep prices under check,'' he said though adding the international price of oil has gone up to nearly 75 dollars per barrel today from just over 30 dollars two years ago.

UNI