Question : REQUESTS FROM KERALA GOVERNMENT FOR KEROSENE



(a) whether the Government have received request from the Government of Kerala to reconsider the increase in price of Kerosene and to increase the quota to the State of Kerala; and

(b) if so, the reaction of the Government thereon?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SANTOSH KUMAR GANGWAR)

(a): Yes, Sir.

(b): The Government had decided in November, 1997 that the subsidy on PDS Kerosene will be reduced in phases to reach the level of 33.33% of the import parity price by 2001-02 and the subsidy will be transferred to the fiscal budget from the year 2002 onward. Accordingly, the ex-storage point price of PDS Kerosene was revised from Rs.2.00 per litre to Rs.4.50 per litre with effect from midnight of 22nd - 23rd March, 2000. The retail selling prices of SKO (PDS) are fixed by the respective State Governments.

Kerosene is a deficit product. The annual allocation of kerosene to the State of Kerala has since been increased from 3,88,171 Kilo litre for the year 1999-2000 to 3,97,257 Kilo litre for the year 2000-01.