New Delhi, Jan 2 (IANS) The government must bite the bullet on fuel price hike as further delay can worsen the situation for oil marketing companies, the Confederation of Indian Industry (CII) said here Wednesday.
Pointing out oil prices were at abnormally high levels in the international market with no signs of softening, CII said further delay by the government in hiking the prices of transport and cooking fuels could make things unmanageable.
“The international situation gives a grim outlook on oil prices, where no significant softening seems to be in the offing. Current prevailing prices of international crude at around $94 combined with India’s 70 percent import dependence is leading to an unsustainable situation on the pricing front,” a CII statement said.
“Further delay in oil price revision is inadvisable, as it would only make the impact that much worse,” the statement added.
CII has suggested that duties and taxes on petroleum products should be further rationalised to cushion consumers.
“The decision should be a mix of fiscal and price measures, such that the ultimate impact on retail price is moderate,” CII said.