The Hindu Business Line : RBI's Annual Report

Oil bonds may not be the solution. On the contrary, it may add to the country's debt burden, at a time when it is necessary to reduce trade deficit. Reforms in governance and administration in all strata could enhance efficiency and eliminate corruption, which will in turn result in enormous benefits for the people.

A. Jacob Sahayam

Thiruvanathapuram

The government must examine measures suggested by the Left parties and others to avoid regular hikes in oil-prices. One solution is merging all public-sector oil companies, which will reduce heavy overheads and advertising expenditure. Since the government itself is the biggest consumer of petrol and diesel, serious measures should be taken to ensure fuel conservation. For instance, only fuel-efficient cars should be purchased and financed by both the Central and State governments. Perhaps, the best way is to curb the manufacture of big cars is to cut expense on imported crude.

Prices once increased must not be reduced and, instead, be retained to avoid future hikes because prices of goods and services are not reduced with a fall in oil prices. Policy should be for gradual reduction in taxes on petroleum products. Rounding-off prices of petro-products can increase revenue earnings without affecting consumers' pockets. However, oil prices should be uniform throughout the country.

Subhash C. Agrwal

Dariba, Delhi

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RBI's Annual Report