Gwalior: The government will have to change its policy over slashing subsidy on LPG gas and diesel as the country has to import 80 percent of its requirement of oil said Union Minister of State for Petroleum RPN Singh.

After laying foundation stone of PNG project at Gwalior, he told reporters that if the rate of crude oil increases by one USD in the international market, the oil companies have to incur loss of Rs 8000 crores.

“The centre has given subsidy of Rs 1, 90, 000 crore to petro products. The government has to incur a loss of Rs 450 on a single cylinder,” added the Minister.

The subsidy is meant for the economically weaker section informed Singh. However the Center is not going to decontrol the petro prices but petrol price is being made as market oriented.

(JPN/Bureau) 

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