Defending the increase in petrol and diesel prices, the Confederation of Indian Industry (CII) has expressed hope that pragmatic measures undertaken in the oil sector will be beneficial to both the industry and the economy.
With the dismantling of the administered pricing mechanism (APM) on April 1, 2002, the prices of petroleum products were linked to the international parity, CII said adding that with the average basket price of crude in the international market hovering around $25 as against $20 estimated during the budget, the increase in domestic prices was long overdue.
The holding-back of the decision was affecting the margins of the oil companies and the government had to take this stand, CII said.
Consumers in India would have to get accustomed to fluctuations in prices in accordance with the international prices, the chamber pointed out.
