March 16, 2002

‘20’

   Following is the text of the Suo Moto statement made by Shri Ram Naik, minister of petroleum & natural gas in Lok Sabha today on the reduction of the price of domestic LPG :

    "As Hon’ble Members are aware, the Finance Minister had, in his budget speech on 28^th February 2002, announced in this august House reduction in the retail prices of diesel by around 50 paise per litre and of petrol by around Re.1 per litre. Increases in the retail price of domestic LPG by about Rs.40 per cylinder and of kerosene oil under public distribution system by about Rs.1.50 per litre were also announced. These changes in price were given effect to by the oil companies with effect from 1^st March 2002.

    After the revision in the consumer prices that I have just now mentioned, Hon’ble Prime Minister received representations from various sections of society including political parties and consumer groups. They had requested the Government for reducing the burden on consumers due to the recent increase in price of domestic LPG. The Government, after considering all aspects of the matter, have now decided to reduce the retail selling price of domestic LPG by about Rs.20 per cylinder. This would benefit over 6.3 crore urban and rural households using LPG for cooking. The reduction in the price will come into force from the midnight of 16^th/17^th March 2002.

    I may mention here that the oil prices over last few weeks have been showing an upward trend. The price of Brent crude oil, which was around $20 per barrel in the last week of February 2002, is presently over $23 per barrel. The prices of petroleum products in the international market have also moved upwards over past three weeks. In spite of the increase in the oil prices in the international market, the Government have, with a view to reduce the burden on consumers using LPG for cooking, decided to reduce the prices that I have just now announced. The subsidy burden due to this price reduction would increase by around Rs.700 crore during the year 2002-03."