New Delhi: State-run oil companies have asked government for increasing price of domestic cooking gas (LPG) and kerosene for Public Distribution System (PDS) in view of increase in global prices, the Lok Sabha was informed on November 21.

"In view of the increase in the international price of LPG and kerosene post-March 2002, the oil companies are of the opinion that the consumer prices of domestic LPG and PDS kerosene needs to be increased," Minister of State for Petroleum and Natural Gas Santosh Gangwar said in a written reply to the Lower House of Parliament.

Gangwar said the government was yet to fix the flat rate of subsidy on domestic LPG and PDS Kerosene. "Once the subsidy rates are finalised, the consumer prices of these products would be fixed by the oil companies in line with the prices in the international oil market."

The current retail selling price of domestic LPG at Rs 240.45 per cylinder was about Rs 140 per cylinder short of import parity price while PDS kerosene at Rs 8.92 per litre was about Rs 4.50 per litre short of import parity price.

In reply to another question, Gangwar said the fluctuation in the international oil market is bound to get reflected in the domestic consumer prices of petroleum product after dismantling of the Administered Pricing Mechanism (APM) from April 1, 2002.

"With a view to partially contain the impact of volatility in the international oil market, the excise duty rates on petrol and diesel were reduced by the government by 2 per cent each effective June 4, 2002," he added.

PTI