Freeing petrol and diesel prices from official control, restoring tax breaks on natural gas production and tax holiday for private oil refiners should be part of the government's agenda in the first 100 days, industry wished.
The Petroleum Federation of India, the apex body of public and private oil firms, has submitted to the Oil Ministry a 100-day agenda for the new Government.
On top of its list is decontrol of petrol and diesel prices. Currently, public sector retailers sell auto fuel at Government-dictated rates, which the private sector competition is unable to match in times of high input cost (crude oil prices).
Petrofed has asked the Government to operationalise the March 28, 2002, resolution that freed petrol and diesel price from administrative control. State retailers fixed retail selling price every fortnight based on international rates till 2004 when the UPA came into power for the first time and brought back administrative controls.
The Federation also wanted the Government to gradually phase out subsidy on domestic LPG through provision of subsidy to families through coupons/smart cards. Also, it wanted the Government to provide targeted direct subsidy administered through a smart card system for distribution of kerosene.
It wanted the tax holiday on natural gas to be restored and the same extended to private oil refiners.