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INDIA MAY EXTEND LPG, KEROSENE SUBSIDIES BY TWO YEARS.
NEW DELHI, June 1 Asia Pulse - The government is likely to extend by two more years subsidies on LPG and kerosene while asking the state-run oil firms to bear part of the Rs 140 billion (US$3.07 billion) under-recoveries due to unchanged prices despite a rise in the cost of raw material.
Subsidies on LPG and kerosene, estimated at Rs 35 billion for 2004-05, were to be eliminated from the next fiscal and a difference of Rs 130 per LPG cylinder and Rs 4 per litre of kerosene between selling price and cost was to be passed on to the consumers.
But the United Progressive Alliance (UPA) government is likely to extend the 3-year subsidy phase-out plan, drawn by the previous government, by another two years to 2007, sources said.
The Rs 22.58 per cylinder subsidy on LPG budgeted in the interim budget for 2004-05 is likely to be enhanced to Rs ...
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