"Initiatives for alternate fuel usage like wind energy and solar power need to be taken and there should be extensive campaigns to promote oil conservation in small and medium industries and domestic sector," said Chandrajit Banerjee, director general, CII.
A marginal increase in the inflation rate due to a hike in oil prices is inevitable, the industry chambers said, adding that the government needs to be cautious and ensure that curbs aimed at lowering inflation should not end up hurting industrial growth.
The PHD Chamber of Commerce and Industry said the government should have used the opportunity to end cross subsidisation of kerosene as well. "The poor can be subsidised directly though income coupons or food stamps," it said.
The Federation of Indian Chambers of Commerce and Industry said the sharing of the burden of rising oil prices by different stakeholders will ensure that the direct impact on consumers is contained.