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This refers to the editorial “Delicately balanced” (Business Line, June 5). The Government has indeed achieved a clever balancing act. It really had no choice as world crude prices are at all-time highs and the oil marketing companies have started bleeding, with the subsidy burden becoming too heavy to withstand on the part of the government.

The duty changes in Customs and excise, to be effected simultaneously, will involve sacrifice of enormous revenue for the government. Although the duty changes will help oil companies to some extent, they will put enormous pressure on government finances.

As rightly stated by the editorial, the oil sector was being wrongly perceived by governments so far as a milch cow. This brought about distortions in prices of petroleum products. The burgeoning number of two-wheelers and auto rickshaws has led to enormous increase in petrol consumption.

An important lesson that all of us including the government must draw from the oil scenario is the pressing need to reduce energy consumption. We must explore alternative sources and not depend on imported oil alone.

The government and corporate India must do some thinking in the matter and come out with workable plans for production and use of alternative renewable energy sources like bio-fuel. Increasing energy efficiency is also crucial. India must expand public transport also and even remote rural parts must be provided transport facility thereby reducing if not eliminating need for private vehicles. Tougher energy standards must be put in place.

K. K. Ammannaya Udupi

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