Kerosene, LPG prices may go up

NEW DELHI: Prime Minister Manmohan Singh has hinted at an increase in the prices of LPG cylinders and kerosene.

The government had allowed oil companies to increase petrol and diesel prices in June, but LPG and kerosene were untouched.

In his Independence Day address to the nation, Singh indicated that the government is ready to revise the prices of the two politically sensitive commodities. With no state elections due for the rest of 2006, industry watchers say the government can afford to take the risk now.

A source indicated that to placate the Left, the government might go in for minor cuts in the excise duty on diesel or petrol without changing the retail price.

Singh said the international price of oil, which was just over $30 a barrel two years ago, is now close to $75. “We have succeeded in insulating our consumers to a great extent,” he said. “But there is a limit to which we can go on subsidising the consumption of petroleum products.”

An LPG cylinder costs Rs297.95 in Mumbai. The price was increased by Rs6.10 in April last year when the VAT regime was implemented. The price of kerosene, which costs Rs9.26 a litre, was last revised by the NDA government.