Our Bureau

New Delhi, Nov. 22

THE Parliamentary Consultative Committee, attached to the Ministry of Petroleum and Natural Gas, was today informed that oil companies would resume release of new liquefied petroleum gas (LPG) connections from next month.

With substantial improvement in the LPG supply, the committee felt that the oil companies could be asked to resume the release of new connections from December 1.

The oil marketing companies had earlier restricted new connections following a shortage of LPG in the market. This was done to ensure servicing of the existing customers.

Some of the members of the committee suggested dual pricing for subsidised domestic LPG and kerosene under public distribution system by retaining subsidies for the poor or below poverty line families and at market price for others.

Responding to this suggestion, the Petroleum Minister, Mr Mani Shankar Aiyar, said the issue had wider implications and needed in-depth consideration, especially as the subsidies and the under-recoveries on these products were about Rs 10,000 crore each annually.

(This article was published in the Business Line print edition dated November 23, 2005)
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