Govt not to intervene in LPG price

The next revision is due on October 31

The Centre has ruled out any intervention in the non-subsidised domestic LPG price regime, even if its costs hit the roof.

The 14.2 kg non-subsidised LPG cylinder currently costs Rs 895.50.

The prices are subjected to revision every month depending on the cost of LPG in the international market.

The next revision is due on October 31 during which there are chances of a further hike in the prices of non-subsidies LPG refills since gas prices in Gulf countries have started moving north again.

“Although the prices of LPG are rising at the global level, particularly in the Gulf countries, there is no question of further touching the LPG prices,” Petroleum Minister Jaipal Reddy said.

He was answering to queries on whether the government was planning to come out with any mechanism to check spiralling prices of LPG refills, which consumers were expected to procure from the market after exhausting the six subsidised cylinder cap in a year.

No hike in diesel price

The minister also said that the government was not considering any hike in diesel prices despite the state-run oil marketing companies incurring huge losses on account of administered prices.

“Despite the government’s best efforts, the oil marketing companies will have to bear the burden of under-recoveries. We are not in favour of hiking diesel prices, let the losses rise,” Reddy said.

The government had last month hiked diesel price by a steep Rs 5.62 per litre. Despite that, PSUs firms are currently losing Rs 11.65 per litre on diesel.

The public sector oil firms are projected to lose Rs 1,67,415 crore this fiscal as compared to a loss of  Rs 1,38,541 crore in 2011-12.

 Separately, the petroleum minister also said that India planned to maintain its oil import at the current level with Iran, which is facing United States sanctions.

Import from Iran

“We are neither trying to reduce nor increase imports from Iran,” he said at Petrotech 2012 Conference here.

Iran was India’s second largest oil supplier till last year. Now, Saudi Arabia, which followed Iran, has acquired the first place with supply of close to 33 million tonnes of crude oil last year.

India imported 24.51 mt crude from Iraq in 2011-12 and 17.67 mt from Kuwait. Iran came fourth with supplies of 17.10 mt of crude last year.

Reddy said there were no problems in getting supplies from Iran.

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