Press Information Bureau
Government of India
Ministry of Petroleum & Natural Gas
23-November-2010 16:46 IST
Rationalising Subsidy on Cooking Gas and Kerosene
Under the “PDS kerosene and domestic LPG subsidy scheme 2002”, Government is providing a fiscal subsidy of Rs. 22.58 per 14.2 kg. Cylinder and Rs. 0.82 per litre on PDS kersene. Currently, based on the refinery gate prices, effective 1st November 2010, the Public Sector Oil Marketing Companies (OMCs) are incurring under-recoveries of Rs. 209.94 per 14.2 kg. Cylinder and Rs. 15.71 per litre on PDS kerosene. Apart from the fiscal subsidy, under the burden sharing mechanism, Government is partially compensating the under-recoveries incurred by the OMCs on the sale of PDS kerosene and domestic LPG. The Government has decided to extend the subsidy scheme namely “PDS kerosene and domestic LPG subsidy scheme, 2002” beyond 31st March,2010 to 31st March, 2014. This was stated by the Minister of State for Petroleum & Natural Gas Shri Jitin Prasada in the Rajya Sabha in a written reply today.

The House was also informed that the that the Government had constituted an Expert Group under the chairmanship of Dr. Kirit S. Parikh to advise on a Viable and sustainable System of pricing of petroleum products. In the light of the recommendations made by the expert group, the Government has decided to increase the retail selling prices of PDS kerosene and domestic LPG by Rs. 3/- per litre and Rs. 35/- per 14.2 kg. Cylinder respectively (at Delhi), with corresponding increases in other parts of the country w.e.f. 26.6.2010.