Need for calibrated price control for oil; include petroleum

Industry chamber PHDCCI on Friday suggested to the government certain measures, such as calibrated price control and inclusion of petroleum products under the goods and services tax, to check rising oil prices.

The current rise in oil prices has fuelled into a raging issue as it is likely to have a cascading influence on the prices of other essential commodities as well, it said in a statement.

PHDCCI President Sanjay Aggarwal said, “It is of utmost importance for the government to address the issue of surging prices of gas, petrol, and diesel, which is due to two key reasons of rising international oil rates and the higher domestic tax structure that is levied by both central and state governments.

It is advisable that the retail prices of auto fuel should not be left open-ended on the basis of international prices, as there should be an inherent and prudent mechanism, which is agreed and approved by both central and state governments, for controlling and checking prices, he said.

“There should be a calibrated price control and check in a situation when global prices are rising and fluctuates depending on global demand-supply scenario,” Aggarwal said.

He also said a possible way is that the central and all the state governments must come forward and hold a Goods and Services Tax (GST) Council meeting for inclusion of all petroleum products under its ambit.

“This is possible only when both the governments come forward and discuss the issue at length,” he added.

Further, he said the central government must convince all states governments and take them on board for controlling and checking prices of petroleum products by ensuring that there is no revenue loss to the states if any model is mutually agreed and accepted by both the governments.