Reviewed by Bishakha Jain
Oil prices have shown a steady rise since the end of 2003. Due to the large increase in the price of a commodity which affects household expenditures, governments have evolved a number of different strategies to deal with this problem. Rising oil prices is one of the biggest risks to the Indian economy as in next fiscal year it could crimp real incomes and spending.
At the core of the policy, the response is the decision about which group in society should bear the immediate consequences of the higher prices—users, taxpayers, or businesses in the oil supply chain.
In present days, oil prices are high because of the hypocrisy of government. The government doesn’t want to reduce the taxes on oil because they feel a reduction in oil prices will reduce national income.
Meanwhile, we know that oil prices are decreasing in the international market nowadays but the government doesn’t want to reduce even single rupee tax on oil prices. The government need to bring oil under GST and people also try to use the renewable form to energy to decrease dependency on oil for energy.
The best option to curb problems related to high oil prices is to switch to renewable sources of energy instead of petrol and diesel. Other options are the use of public transportation, use of the bicycle for a shorter distance etc.
From the Government side, they should improve the number and capacity of public transportation, proper traffic management system along with the construction of flyovers and expansion of the existing road.
By significant efforts of the government and public, the prices of oil can be stable for the present time and might be lower when electric cars will run on Indian road without any difficulties.