Petroleum Minister Ram Naik indicated on Friday that prices of domestic cooking gas may be hiked before the Budget to check growing subsidies but said consumer interest will be kept in mind while taking any such decision.
"The international price of crude oil as well as imported LPG have gone up substantially. We being 70 per cent import dependent, there will be some revision. But it is a matter to be decided by the Cabinet," Naik said.
Under the flat rate subsidy scheme, the finance ministry has pegged subsidy on LPG at Rs 71 per cylinder, which falls short of the average import parity price by about Rs 50-60 per cylinder.
Similarly, on kerosene for public distribution system, the subsidy elements has been pegged at Rs 2.57 per litre, about Rs 1.50 per litre short of import parity price.
The spike in crude oil prices already had its bearing on petrol and diesel prices, which have been raised by about Re one per litre from Friday.
Naik declined to quantify the hike expected in LPG prices, but said "consumer sensitivity and interest will be kept in mind."
"In June, the government had cut excise duty on petroleum products by 2 per cent to check excessive volatility in global oil prices. This time too there is excessive volatility and we are considering all options," he said.
