LPG price to be hiked by Rs 40; Petrol down by Re 1

Government on Thursday announced a hike of Rs 40 per cylinder of domestic cooking gas and an increase of Rs 1.50 per litre of kerosene effective from Friday.

The price hike follows the reduction of Administered Price Mechanism mandated subsidy on LPG and kerosene to 15 and 33 per cent respectively.

Announcing the Budget proposals for 2002-03, Finance Minister Yashwant Sinha said the price of petrol and diesel would come down by about Rs 1 and 50 paisa respectively from March 1, 2002 as a result of dismantling of Administered Pricing Mechanism .

With the dismantling of the APM in the Petroleum sector from April 1 this year, the Oil Pool Account will be dismantled from the same date and the pricing of petroleum products will be market determined.

Private companies will be permitted in distribution of petroleum products. A Petroleum Regulatory Board will be set up to oversee the sector.

Petrol currently costs Rs 27.54 per litre in Delhi while diesel is at present priced at Rs 17.09 in the national capital.

Following the price reduction, petrol and diesel in Delhi would cost Rs 26.74 per litre and Rs 16.59 per litre respectively.

Sinha announced that pricing of petroleum products will be market determined from April 1, 2002 when the petroleum sector is deregulated.

PTI

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