Consider the following statements: 1. The Oil Pool Account of Government of India was dismantled with effect from 1.4.2002. 2. Subsidies on PDS kerosene and domestic LPG are borne by Consolidated Fund of India. 3. An expert committee headed by Dr R. A. Mashelkar to formulate a national auto fuel policy recommended that Bharat State II Emission Norms should be applied throughout the country by April 1, 2004. Which of the statements given above are correct?

Statement 1: The Oil Pool Account was a mechanism to stabilize petroleum product prices by accumulating surpluses and using them for subsidies. It was indeed dismantled with effect from April 1, 2002, as India moved towards market-determined pricing for petroleum products. This statement is correct.

Statement 2: Subsidies on PDS kerosene and domestic LPG are ultimately borne by the government. Any expenditure by the Government of India, including subsidies, is charged to the Consolidated Fund of India. While oil marketing companies and upstream companies share some of the burden, the government's portion of the subsidy comes from the Consolidated Fund. This statement is correct.

Statement 3: The Dr. R. A. Mashelkar Committee, which submitted its report in 2002, recommended a phased implementation of auto fuel norms. Specifically, it recommended that Bharat Stage II (BS II) emission norms should be applied throughout the country by April 1, 2005, not April 1, 2004. BS II was already applicable in major cities by 2001. The committee pushed for nationwide application by 2005. Therefore, the date mentioned in the statement is incorrect. This statement is incorrect.

Based on the analysis, statements 1 and 2 are correct.

The final answer is A