No rise in LPG, kerosene prices for now, says oil minister

New Delhi: Ruling out any immediate hike inprices of LPG and kerosene, Oil Minister Dharmendra Pradhan
today said the new government will continue with the policy ofsubsidising commonly used cooking fuels.

“There will no increase in LPG and kerosene prices fornow. We will continue with the extant pricing policy,” he saidhere.

Besides continuing to subsidise LPG and kerosene, the NDAgovernment will also not disrupt the previous UPA government’spolicy of up to 50 paise a litre increase in diesel priceevery month.

“The (Narendra) Modi government has come to power ridingon hopes of millions of poor and this government will workkeeping their interest in mind,” he said.

The government heavily subsidises LPG and kerosene. The LPGprice was last hiked in Jun 2011 when it went up by a steep Rs50 per 14.2-kg cylinder. Two subsequent increases totalling Rs14 were on account of increase in commission paid to dealers.

LPG price in Delhi at Rs 414, is Rs 449.17 short of cost.Price of kerosene, which currently costs Rs 14.96 a litre
in Delhi, was last hiked in June 2011 when its price was hikedby Rs 2. Current subsidy on kerosene is Rs 33.07 per litre.

Pradhan said Modi government will decide on policieskeeping the interests of the country, its poor, youth and
women in mind.

He, however, added that continuing subsidies does notmean the government will not pursue reforms. “Subsidies andreforms are not contradictory. They can co-exist.”

The new government, he said, is focused on improvingdomestic oil and gas production and bring in policies that
will attract investments.

A new policy paradigm that will restore investorconfidence as well as protect consumer interest is what the
Modi government is looking at, he said.

Endorsing the previous UPA government’s monthly 40-50paise per litre increase in diesel prices, the government willcontinue with the monthly revisions till the present Rs 3.40 alitre loss on the fuel is fully bridged.

After the diesel subsidy is eliminated during the courseof the year, Oil Ministry may declare the fuel as decontrolledas was done in case of petrol in June 2010.

Since its decontrol, petrol rates are revised on the 1stand the 16th of every month based on average cost in the
previous fortnight. Barring a few exceptions, petrol priceshave moved in tandem with cost since then.

PTI