'Oil companies have been allowed to make small corrections periodically': Chidambaram
Finance Minister P. Chidambaram on Thursday reiterated Union Petroleum and Natural Gas Minister Dr. M. Veerappa Moily's statement that the oil companies are authorised to make price revisions from time to time.
"I am not adding anything to what Mr. Moily said. The oil companies have been allowed to make small corrections from time to time. That I believe the Petroleum Ministry is allowing the oil companies," Chidambaram told the media here.
"I am not factoring that at the moment. I am proceeding in the basis that the subsidy bill remains the same. When they will make these small corrections, how much I can't say. So, I am not factoring it. But they have been given the freedom to make small corrections, " he added, when asked that will there be any impact on the subsidy amount even if it's a small change in the prices.
Talking to the media here after the meeting on Cabinet Committee on Political Affairs, Dr. Moily said that there is no increase in the prices of Diesel and Kerosene.
Dr. Moily, however, said that the oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs 9.60 per litre loss they incur on the fuel.
Dr. Moily, who refused to provide details of diesel price increase, said the raise may take place as early as tonight.
The government also raised the cap on supply of subsidised LPG cylinders to nine bottles from six per year.
"I am happy to inform the Cabinet Committee on Political Affairs has decided to raise the cap on subsidised LPG to nine cylinders per household in a year from existing six cylinders," Dr. Moily said.
The consumers will get a quota of five subsidised cylinders between September 2012 and March 2013. They will be entitled to nine cylinders per annum from April 1, 2013.