Panel to suggest change in fuel pricing formula for the current fiscal

A day after finalising a disbursement of Rs. 45,000 crore by way of fuel subsidy for fiscal year 2012-13, the Finance Ministry is left with Rs. 20,000 crore out of the budgeted Rs. 65,000 crore and with another Rs. 60,000 crore coming from upstream companies.

With Rs. 80,000 crore available for meeting the subsidy burden, Finance Minister P. Chidambaram does not expect the oil bill to exceed that figure during 2013-14.

“We have done our sums and this Rs. 45,000 crore being given yesterday on account but we do not expect any more claims from the Ministry of Petroleum and Natural Gas for 2012-13,” Mr. Chidambaram said.

It may be recalled that at a meeting called by Prime Minister Manmohan Singh on Wednesday this week to sort out the tangle between the Finance Ministry and the Ministry of Petroleum and Natural Gas, the Finance Minister agreed to provide an additional Rs. 45,000 crore on top of the Rs. 55,000 crore already paid to oil marketing companies for sale of diesel, cooking gas (LPG) and kerosene at subsidised rates.