PANAJI, FEB 10: The forthcoming budget will see a substantial increase in the price of Liquified Petroleum Gas (LPG) and kerosene as the Central Government fights to reduce subsidies and slash the oil pool deficit, Union Minister for Petroleum Ram Naik said here on Thursday.Addressing a press conference here, Naik informed that the Union Government is committed to completely phasing out subsidies on petroleum products by 2002, a decision taken by the United Front government headed by I K Gujral in 1997. Consequently, a LPG cylinder which costs Rs 155 at present would see its price rise by another Rs 144 by 2002, the Minister said. ``We can't go back on reduction of subsidies in the interest of deregulation,'' Ram Naik said.He added that the subsidies on kerosene amounted to Rs 8000 crore while Rs 4000 crores is spent to subsidize consumers of LPG. On the whole, India spends Rs 54,000 crore on the import of crude oil. Only aviation turbine fuel and petrol bring in profits, Naik said.
