The Hindu Business Line : Crude prices

With the continued increase in crude oil prices there has been a simultaneous increase in petrol consumption, owing to a steady increase in vehicular traffic. Rising oil prices have placed both the government and the oil companies in an embarrassing situation.

So the Petroleum Minister, Mr Mani Shankar Aiyar, has said "all the three stakeholders — oil companies, Government and the consumers — would have to share the burden" (Business Line, Aug 13).

But before the consumer shares in the burden, it must be made clear how the profit/losses as a result are going to be shared between the government and the oil companies.

Further, the impact this would have on other sectors is also to be considered. A transparent policy and a mechanism that would automatically take care of the subsidy factor and the interest of all stakeholders should be evolved.

While taking action for increased domestic production, expansion, alternative sources, R&D etc, efforts need be taken to reduce over consumption.

The public transport system needs to be improved.

A. Jacob Sahayam

Thiruvananthapuram

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Power and profits in the wind

Education de-reserved

Crisis in Niger — Acute poverty in a world of plenty

Where is world oil headed?

Introspection day

A green revolution for energy

Wholesale gains from FDI in retailing

Crude prices

Mumbai floods