Domestic price of LPG linked to Saudi, not based on cost of crude oil: Govt

7/30/2018

New Delhi, The government on Monday said the domestic price of LPG in the country is not linked to the cost of crude oil and is rather based on international price - that is the Saudi contract price. Stating this during Question Hour in the Lok Sabha, Union Petroleum and Natural Gas Minister Dharmendra Pradhan said the government continues to modulate the effective price of domestic LPG supplies to the domestic consumers under Direct Benefit Transfer. He also said multiple measures are being taken, including focusing on biofuels, to ease the cost of crude oil import. Answering to questions from BJP lawmaker Anurag Thakur, the Union Minister further said the government is focusing on bio-fuels such as first and second generation ethanol, biodiesel and bio-CNG as part of efforts for "import reduction, environmental benefits and increased income to farmers". The government has notified the National Policy on Biofuels 2018, which allows use of damaged food grains for production of ethanol for blending with petrol, Mr Pradhan said. To a question on whether the government measures will help farmers, the Union Minister said, "With the objective of settling sugarcane farmers dues and achieving higher ethanol blend percentage, the government has recently fixed ex-mill price of ethanol derived out of C-heavy molasses and B-heavy molasses as Rs 43.70 per litre and Rs 47.49 per litre respectively". "There is also a provision to allow surplus food grains for ethanol production during the surplus phase as decided by the National Biofuel Coordination Committee," he added.