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.
The petroleum ministry, he added, has allowed oil companies to "make small correction (in diesel prices) from time to time".
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.
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.
Besides, the CCPA also decided to raise the cap of subsidised LPG cylinders from six to nine per household in a year.
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.