Lpg, Kerosene Price Rise Imminent

Oil: Petroleum subsidy raised by 29.5% over revised estimates for current fiscal

An increase in prices of domestic liquefied petroleum gas (LPG) and kerosene sold through public distribution system (PDS) looks imminent, though Finance Minister Jaswant Singh today apparently raised petroleum subsidy for the next financial year by 29.5 per cent over the revised estimates for the current fiscal.

However, a close look at figures show that the subsidy on LPG and kerosene has not been increased, but could have come down since, as per the agreed formula, the finance ministry is still to pay oil companies Rs 2,200 crore for the current year as subsidy on these two products. This shortfall is likely to be made up from the next fiscal's allocation.

While increasing the subsidy on domestic liquefied petroleum gas and kerosene from the current year