The Director General of the Confederation of Indian Industry, Chandrajit Banerjee, released a statement on May 24, 2012, regarding the recent petrol price hikes. The price hikes have caused a stirring of anger amongst many Indians.
Statement on Petrol Price Hike
by Mr Chandrajit Banerjee, Director General, CII
Rationalization of petroleum prices is one of the most important reforms that industry has been advocating and it has been high on CII's agenda. The current under recoveries in diesel and LPG requires immediate action to ensure that dual pricing of diesel pricing is introduced, where non farm use of diesel should have minimum subsidy.
Also the huge subsidy on urban use of LPG should be phased out. The increase in price of petrol is quite steep and would not resolve the issue of ballooning fuel subsidy. CII would urge the government to address the subsidies in diesel and LPG urgently. Kerosene being a poor man's fuel should continue to get the government support for the time being.
Confederation of Indian Industry