The decision was taken following meetings between the ministry of petroleum and natural gas and the ministry of finance.
The members recommended that the price at which the petroleum products should be sold and purchased would neither be approved by the government nor the Downstream Petroleum Sector Regulatory Board, which would be in place after the APM dismantling.
However, the board would ensure the implementation of the agreements between the domestic companies that may be entered into after April 2002. The powers have been given to ensure uninterrupted supplies of retail products during the first two years after APM dismantling, during which the private sector domestic oil companies are expected to put their retail infrastructure in place. The board would ensure that the agreements are legally binding on amongst the marketing and refining companies for exchange of petrol and diesel.
The arrangements would mainly be with regard to quantities of petrol and diesel to be transferred amongst the companies at different locations in the country and prices of the two commodities.