Government to bear cost of kerosene and domestic LPG
Posted on: 14/Jul/2015 10:57:54 AM - No. of views : (1977)
The government has announced that it will bear the entire difference of money between the cost and retail price of kerosene and LPG. This is great news for the population as it means that final cost will be reduced. According to a press report, the government will bear up to Rs. 12 per litre of kerosene, and the entire bill for domestic LPG.
In the press release, a Finance Ministry official said, �The government has capped the subsidy it will pay on kerosene at Rs 12 per litre while deciding to foot the entire bill on domestic cooking gas... The Finance Ministry will pay Rs 12 per litre in cash to state-owned fuel retailers and any unbridged gap between the retail selling price and the cost of production will be borne by upstream companies like ONGC... At current oil prices, the upstream share for the full fiscal may be Rs 5,000-6,000 crore... While provisioning for kerosene is sufficient, additional funds may have to be provided in supplementary demands for LPG.�
