The Hindu : LPG to cost Rs. 20 less

Online edition of India's National Newspaper
Sunday, Mar 17, 2002

Front Page

Front Page

LPG to cost Rs. 20 less
By Our Special Correspondent

NEW DELHI, MARCH 16. Even as international crude prices are rising, the Government has rolled back the prices of liquified petroleum gas (cooking gas) by Rs. 20 a cylinder, due to pressure from the Bharatiya Janata Party and its allies in the National Democratic Alliance. The subsidy burden on the exchequer will now rise by an estimated Rs. 700 crores during 2002-3.

Disclosing this here today in the Lok Sabha, the Petroleum Minister, Ram Naik, said the hike of Rs. 40 a cylinder announced in the 2002-3 budget had been reduced by half, and the new prices would come into effect from midnight. The retail price of an LPG cylinder would now be Rs. 240.45 in Delhi, Rs. 247.50 in Chennai, Rs. 244.20 in Mumbai and Rs. 265.50 in Kolkata.

However, there was no change in the hike of Rs. 1.50 on per litre of kerosene, Mr. Naik said. This led to an uproar in the House with the two NDA allies, the Telugu Desam Party and the Janata Dal(U), seeking the total withdrawal of the price hike of both the LPG and kerosene. The Opposition made a similar demand.

The decision to roll back the LPG prices was evidently taken on Friday at a meeting convened by the Prime Minister, Atal Behari Vajpayee, with the Finance Minister, Yashwant Sinha, and Mr. Naik. But the extent of rollback was apparently enhanced by Mr. Naik only a short while before the actual announcement. The original statement circulated among the members mentioned a reduction of Rs. 15 a cylinder but the Minister announced a cut of Rs. 20.

Mr. Naik said the decision to roll back the increase in the prices of LPG was a result of representations received by Mr. Vajpayee from various sections of society, including political parties and consumer groups. The reduction in the retail selling prices would benefit over 6.3 crores of urban and rural households.

Send this article to Friends by E-Mail

Front Page

Stories in this Section

VHP, Bajrang Dal men storm Orissa Assembly

Court is the final authority, says PM

Ayodhya security curbs to be eased

Renewed violence in Gujarat

LPG to cost Rs. 20 less

'Blast' in parcel room

Violence in Bangalore

Suspension of LTC lifted

US missile test successful