SME Times News Bureau
Commenting on the decision of the Government to hike Petrol and Diesel prices by Rs 4 and Rs 2 respectively, the CII President, Venu Srinivasan said that the Government decision was on expected lines.

Srinivasan viewed that as the WPI inflation is one of the lowest in a long time and the international crude prices have breached the USD 70/ barrel mark, the current decision has to be seen in the overall interest of the fiscal situation of the country as well as the reforms in pricing and taxing of petroleum in the country.

Srinivasan said that today's decision would help reduce the Government's "off balance sheet" deficit which is usually met by issuing Oil Bonds.

Commenting further on the reforms required in the sector, the CII President said that eventually the Government should gradually move towards implementation of the recommendations of the Rangarajan Committee on pricing and taxation of Petroleum products.

Earlier on Wednesday, Assocham and FICCI also welcomed increase in prices of petrol and diesel stating the decision will help better management of government finances and improve the balance sheets of oil marketing firms.