MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI R.P.N. SINGH)
(a): Government is providing a subsidy of Rs. 0.82 per litre on PDS Kerosene from
the fiscal budget under the “PDS Kerosene and Domestic LPG Subsidy Scheme, 2002â€
to the Public Sector Oil Marketing Companies (OMCs). In addition to the fiscal
subsidy, the OMCs are currently incurring an under-recovery of Rs. 20.57 per litre
on PDS Kerosene.
(b): The Retail Selling Price (RSP) of Kerosene in India and neighbouring
countries as on 1st February, 2011 in terms of Indian Rupee is given below:
RSP of Kerosene (Rs. per litre) Rs. /litre
Bangladesh 28.27
Nepal 40.58
Sri Lanka 20.98
India# 12.73
# RSP of PDS Kerosene in Delhi
Note: Data on neighboring countries as provided by Indian Oil Corporation.
The RSP of Kerosene for Bhutan is not available.
(c) & (d): With a view to assess the demand of Kerosene in different States/
Union Territories (UTs), the Government commissioned a comprehensive study of the
subject through the National Council for Applied Economic Research (NCAER) in
December 2004. NCAER in its report had estimated the total leakage/diversion of
Kerosene meant for distribution under Public Distribution System (PDS) at 38.6%.
(e) & (f): Allocation of PDS Kerosene is made by the Government of India to
different States/UTs on a quarterly basis for distribution under PDS. Further
distribution within the States/UTs through their PDS network is the responsibility
of the concerned States/UTs. This Ministry has not received any information
regarding smuggling of PDS Kerosene from India into neighbouring countries.
(g): This Ministry has signed a Memorandum of Understanding (MOU) with Unique
Identification Authority of India (UIDAI) to partner in the Project related to
distribution of PDS Kerosene and domestic Liquefied Petroleum Gas (LPG) for
better targeting of subsidy to the intended beneficiaries.
Further, in view of incidents of pilferage and adulteration, and to
further strengthen the monitoring and reinforce anti adulteration efforts, it
has, been decided that an effective Marker System will be introduced within a
period of six months. State/UT Government have been requested to introduce
Global Positioning System (GPS) based vehicular tracking system for vehicles
used for transporting PDS SKO similar to the one used by OMCs for Petrol/Diesel
tankers.
