Annual subsidy of almost $1bn for LPG and kerosene

Vol 6, PW 6 (22 May 02) News in Brief
     

Selling LPG at free market rates is no easy task in India when the government gives millions of dollars in subsidy to artificially lower the price of LPG sold by state companies.

On 14th May oil minister Ram Naik told parliament the government has set aside a massive Rs4, 495cr ($936m) this year to subsidise kerosene and LPG cooking gas sold through the Public Distribution System. Separately Naik said India will earn 10% more in customs duty on imports of crude during 2002-03 over last year: Rs7, 530cr ($1.57bn) against Rs6, 803cr ($1.42bn).

LNG Summit