<div> </div><div>The government will not factor the impact of diesel price hike by oil companies while computing the oil subsidy bill for the current fiscal, Finance Minister P Chidambaram said on 17 January; 2013.</div><div> </div><div>"I am not factoring that (impact of price hike on oil subsidy) at the moment. I am proceeding with the basis that the subsidy bill remains the same. When and how they (oil companies) will make small corrections, I can't say," he said.</div><div> </div><div>He was responding to a question on how the decision of the Cabinet to allow oil companies to increase diesel prices would impact the oil subsidy bill.</div><div> </div><div>The Petroleum Ministry, he added, has allowed oil companies to "make small correction (in diesel prices) from time to time".</div><div> </div><div>The government in December obtained Parliament approval for raising the oil subsidy bill by Rs 28,500 crore over and above the amount earmarked in the Budget for 2012-13. With the additional allocation, the total oil subsidy bill in the current fiscal will soar to Rs 72,260 crore.</div><div> </div><div>Concerned over under-recoveries by oil companies, the Cabinet Committee on Political Affairs (CCPA) earlier in the day authorised oil marketing companies to make price correction from time to time.</div><div> </div><div>Besides, the CCPA also decided to raise the cap of subsidised LPG cylinders from six to nine per household in a year.</div><div> </div><div>These decisions are expected to improve the bottom line of the oil marketing companies and at the same time contain the oil subsidy bill of the government.<br /><br />(PTI)</div>
