Subsidized kerosene supply to be restricted

The government plans to restrict the supply of heavily subsidized kerosene to Below Poverty Line (BPL) families only, Indias Minister of State of Petroleum and Natural Gas Dinsha Patel said in July.  “The Government has accepted, in principle, the recommendation of the Rangarajan Committee Report regarding restricting the heavily subsidized PDS kerosene to BPL families only,” he said. He did not say, however, from when the decision would be implemented. The move would help thwart use of kerosene for adulterating gasoline and diesel fuel due to the huge price difference between the automotive fuel and the mass-cooking fuel. “Generally, diesel is adulterated with kerosene. The retail selling prices of diesel and PDS kerosene in Delhi are Rs 32.25 (US$0.69) a liter and Rs 9.05 (US$0.19) per liter respectively,” he said. “The possibility of adulteration of petrol/diesel by some unscrupulous elements cannot be ruled out due to the large price difference,” he said. Indias public sector oil marketing companies (OMCs) have taken action against 1,911 kerosene dealers in 2005-06 for irregularities and malpractices. knowledge_base figure has jumped from 616 cases in 2004-05 and 778 cases in 2003-04. (July 25, 2006)