The Hindu Business Line : States express reservations about dual pricing of LPG, kerosene

THE Petroleum Ministry's proposal to consider dual pricing for subsidised kerosene and cooking gas (LPG) has not found many takers amongst the State Governments.

At a high-level meeting called by the Petroleum Ministry, representatives of almost 20 States and major Union Territories saw emergence of divergent views. Most of the States, including Tamil Nadu, Maharashtra and Punjab, opposed the idea.

States such as Bihar said that a greater consideration is required at the political level as this would amount to major shift in the pricing mechanism. However, on the issue of checking diversion and adulteration of the products, the States endorsed the Ministry's views that it needs to be strictly monitored. According to a Petroleum Ministry official, the States were willing to work in tandem with oil marketing companies (OMCs).

The Ministry had called the meeting of the State representatives, as it perceived that the timing was appropriate to discuss issues such as taking out above poverty line (APL) cardholders from the purview of subsidised kerosene and controlling the leakage, which would help in bringing down the subsidy bill substantially. The Ministry officials maintained that the Government needs to take a view on whether kerosene sold under the public distribution system (PDS) should cover APL consumer and if not, what should be the arrangement for APL.

Another issue for consideration is whether there should be one price or dual price, the official said, adding that the Government would also be considering how to make kerosene available for non-domestic purpose, as the extent of diversion was high.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page