Crude oil prices have touched $110 per barrel in international market. India's public sector marketing companies have to face losses in this connection. It is noticeable that at present we have to import more than 75 per cent crude oil for our energy requirements. The coming years could see this requirement touching 90 per cent. The reason behind this is not lowering of prices of crude oil and continuous demand of energy in China, India and other developing countries.
In such countries the governments give subsidy on petro products, due to which its demand does not come down even when the price of crude oil goes up. The Organisation of Oil Exporting Countries (OPEC) has decided not to increase production of crude oil, even if its price keeps on rising. With the value of the dollar against the Euro falling and continuous concern over its supply has also led to unexpected hike of crude oil price.
Taxes are already high in India and the government has come out with ways to solve this problem by issuing oil bonds to meet losses. However, it is not necessary that a permanent solution may be arrived at this way. The government is the biggest consumer of oil in India. Other sectors come after it. First of all, it is necessary that the consumption of oil should be decreased. Efforts should also be made for saving oil. Use of private vehicles should be controlled and the traffic should be made easier and public transport should be made popular.
Buses and car pool system should be developed to carry employees/officials to and fro from office. Rationing system could also be followed. OPEC should also take steps to control oil prices in international market. In the present circumstances saving of oil should be enforced. Research for alternative fuel should be carried out.
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