All these six energy companies have strongly objected to the continuance of high level of subsidy on LPG and have demanded a level-playing field for the private sector vis-a-vis the public sector.

Addressing a press conference in the capital on Friday, President ILPGIA SK Hazra said the price subsidy of 68 per cent on LPG cylinders for domestic use is against the declared policy of dismantling the administered pricing mechanism (APM) and phasing out the subsidy by 2002, and was harming the interests of private LPG industries. "Subsidy of Rs 160 per cylinder was making the private sector, which was selling LPG at import parity price, uncompetitive. Public sector companies were marketing LPG to bulk and commercial consumers at subsidised rates against the declared policy," he added. The association demanded strict adherence to the declared policy of subsidy withdrawal. If it was not possible, alternatively, a similar subsidy should be extended to the private sector, Mr Hazra said. Moreover, as per him, import of LPG should be duty free. Mr Hazra said, of the six million tonne LPG market, 5.4 million tonne is subsidised in the domestic markpet, while national oil companies are dumping subsidised LPG inthe remaining bulk and commercial consumer segments. The Rs 650 crore invested by us will go down the drain if we have to compete with subsidised gas suppliers," Mr HAzra said.