ID :
9405
Thu, 06/05/2008 - 14:24
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https://www.oananews.org//node/9405
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INDUSTRY HAILS FUEL PRICE REVISION
New Delhi, June 5 (PTI) Industry Wednesday welcomed the government decision to hike fuel prices and cut duties, stating that the measures will provide some cushion to oilmarketing companies that are suffering huge losses.
Apex business chambers said the runaway rise in international crude oil price, which had crossed 135 dollar a barrel recently and is ruling at 124 dollar per barrel now,has made it incumbent on all stakeholders to share the burden.
"Time has come when all the stakeholders should bear the brunt of increase in oil prices," newly-appointed AssochamPresident Sajjan Jindal said in a statement.
He appealed to the political parties to support thedecision on price revision.
"The sharing of the burden of rising oil prices by different stakeholders will ensure that the direct impact on the retail consumers is contained," the Federation of IndianChambers of Commerce and Industry said in a separate release.
It said that there was a further scope for providing cushion to the oil marketing companies by restructuring salestax regime on petroleum products at the state level.
"Ficci has been advocating the need for targeting subsidies to the needy by way of direct cash transfers ratherthan providing subsidised fuel," it said.
The government has hiked petrol and diesel prices by Rs 5 and Rs 3 a litre, respectively, and that of L.P.G. by Rs 50 acylinder, while effecting no changes in the kerosene price.
Besides, duties have been cut and the Centre would take financial hit of Rs 22,660 crore to save the government-ownedoil marketing companies from a colossal burden of under-recoveries.
Apex business chambers said the runaway rise in international crude oil price, which had crossed 135 dollar a barrel recently and is ruling at 124 dollar per barrel now,has made it incumbent on all stakeholders to share the burden.
"Time has come when all the stakeholders should bear the brunt of increase in oil prices," newly-appointed AssochamPresident Sajjan Jindal said in a statement.
He appealed to the political parties to support thedecision on price revision.
"The sharing of the burden of rising oil prices by different stakeholders will ensure that the direct impact on the retail consumers is contained," the Federation of IndianChambers of Commerce and Industry said in a separate release.
It said that there was a further scope for providing cushion to the oil marketing companies by restructuring salestax regime on petroleum products at the state level.
"Ficci has been advocating the need for targeting subsidies to the needy by way of direct cash transfers ratherthan providing subsidised fuel," it said.
The government has hiked petrol and diesel prices by Rs 5 and Rs 3 a litre, respectively, and that of L.P.G. by Rs 50 acylinder, while effecting no changes in the kerosene price.
Besides, duties have been cut and the Centre would take financial hit of Rs 22,660 crore to save the government-ownedoil marketing companies from a colossal burden of under-recoveries.
