Administrative price mechanism (APM) is applicable for which of the following in India?

  1. Hydrocarbon sector 
  2. Fruits and Vegetables
  3. Automobiles

 Select the correct option from the codes given below:

Answer: [B] 1 Only

India’s oil sector, dominated by government-owned enterprises continues to operate under the administrative price mechanism (APM). Under the APM, prices in the hydrocarbon sector are controlled at four stages production, refining, distribution and marketing on the principle of compensating normative cost and allowing a pre-determined return on investments.

This question is a part of GKToday's Integrated IAS General Studies Module