Tackling Oil Prices

The hike in oil prices have evoked strong feelings and justifiably too. Who wants to pay more for fuelwhen 8% inflation is still hurting every one and the present hike would push it up by another 1%. While the PM has predictably referred to increasing oil prices in the international market (India produces only 30% of its needs!) and has appealed to the people for conserving oil, he has woken up a little too late when calling upon his colleagues to observe austerity and cut down foreign travel.The reaction of the Opposition parties has been surprising. While the Left has criticised the govt. for increasing prices rather than cutting duties,it has provided no answer on how the consequential loss in revenue should be met. The BJP has called the hike an "economic terror" almost puting the PM in the list of terrorists. While its concerns with terrorism are well-known, it chose to ignore the fact that with crude oil prices having shot up from about 66$ a barel at the time of last revision to 139 $ in recent days, no govt. could continue to sell oil at old rates. Unlike the Left, it did not even make any suggestions. Interestingly the demand for CNG kits has doubled after the hike since its price, unlike that of petrol, has actually fallen recently. What kind of steps should be initiated to counter the ol crisis? One,the public transport must be strengthened on a war footing. Metro rail projects should be executed immediately by increasing allocation and support. Simultaneously parking charges should be raised substantially to discourage private transport. Two, fuel-guzzling cars (luxury and SUVs for instance) must be taxed higher to discourage people from using them. Swift sells in Singapore at three times its price in India and cars meant to be driven during non-peak hours and weekends offered cheaper. India could do with some such measures. But before we ask the citizens to cooperate, let the leading political figures set an example by doing away with a fleet of cars following them everywhere. Charity, after all, begins at home.