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'Govt will have to withdraw LPG subsidy by 2002'

The government will have to take hard decisions in the overall interests of the country's economy and slowly withdraw subsidies on liquefied petroleum gas, or LPG, and kerosene before the year 2002, Union Minister of State for Petroleum and Natural Gas E Ponnusamy said.

Talking to reporters in Madurai, the minister said that the government was still providing subsidy to the tune of Rs 132 per LPG cylinder and Rs 6.50 per litre of kerosene. It had a deficit of about Rs 63 billion in the oil pool due to rise in crude oil price.

However, he said, since the Organisation of Petroleum Exporting Countries, or OPEC, had decided to increase crude production, there was a possibility of the petroleum prices coming down. In that case, the administered price mechanism benefits would be passed on to the consumers, he said.

He said government's new exploration policy-'Vision-2025' aimed at achieving self-sufficiency in petroleum products.

Under the policy, oil exploration would be taken up in 25 blocks at a cost of Rs 180 billion. Exploration would be undertaken in collaboration with 12 foreign and eight Indian companies at seven offshore, 12 deep sea and plain locations.

He expressed hope that the country would shortly achieve self-sufficiency in petrol production and gas.

PTI

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