Import duty cut on crude likely

quot;We are certainly examining the matter but such a change must be linked to trends in the international market. The ministry will have to consider aspects like the economic situation and, of course, the common man,quot; he said. He reiterated that there was no question of delaying the process of introducing market-determined pricing for the oil sector beyond 2002. As per the Nirmal Singh committee reporton deregulation of the oil sector, import duty on crude, which is presently 20 per cent, should be brought down to nil by 2002.

The panel, it may be recalled, had recommended a reduction of import duty to 15 per cent for high speed diesel now 25 per cent and motor spirit from the present 30 per cent as also other products like bitumen and light diesel oil. The other suggestions pertained to LPG ten per cent import duty which has already been implemented, LNG nil, superior kerosene oil nil, low sulphur heavy stock ten per cent and imposition of five per cent customs duty on naphtha.

Naik had already announced at a recent press meet in New Delhi that the petroleum ministry would review the subsidies on LPG and kerosene which run into several thousands of crores of rupees.