ibnlive » India

Jan 17, 2013 at 05:39pm IST

Oil firms have liberty to make small changes in diesel prices, Moily tells CNN-IBN

New Delhi: The government on Thursday took the first step towards diesel decontrol and allowed the oil companies to raise prices from time to time, but kept the mechanism to be followed unclear. While speaking to IBN18 Editor-in-Chief Rajdeep Sardesai, Union Petroleum and Natural Gas Minister Veerappa Moily said that the government is following the suggestions of the Kelkar committee which advised total decontrol of diesel pricing.

Moily said, "We have now given liberty to all oil marketing companies to go in for small correction in days to come. The companies are at a liberty to do small corrections - considering all aspects."

Moily also said, "We have taken a first and decisive step oil companies will take a decision when full deregulation will be done." Meanwhile, the government has also raised the cap on subsidised LPG cylinders from six to nine in a year, effective from April, 2013.

"We need to look at the health of oil marketing companies and also the economy," said Moily.