New Delhi: The government today allowed state-run oil marketing companies to revise diesel prices from time-to-time in line with global crude oil prices.
“Oil marketing companies have been given the freedom to make small corrections from time-to-time,” Finance Minister P. Chidambaram told reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.
The finance minister did not give any details about the quantum and timing of the revision in diesel prices.
“Can’t say how much the price quantum or timing of the hike will be,” Chidambaram said.
He said the revision in diesel prices by the oil marketing companies would not have any significant impact on the government’s petroleum subsidy bill. “We are not factoring in small corrections in subsidy bill.”
Earlier, Petroleum and Natural Gas Minister M. Veerappa Moily said that the government-run oil marketing firms had been allowed to revise prices from “time-to-time”.
“For now, there’s no revision in the prices of diesel. But the companies are authorised to make price revisions from time-to-time,” Moily said.
Following the government’s decision, the oil marketing companies are likely to raise the diesel prices soon. They are incurring a loss of over Rs.9 on sale of per litre of diesel, the most consumed fuel in India.