Important sections of government and media in India have been negligent about theimpact of alarming rise in crude oil prices. They have ignored vital evidence that Indian oilcompanies’ ability to ensure sustainable supply is under severe pressure amidstburdening subsidies, rising global demand, depleting supplies and a host of other factors,in spite its serious implications for the country’s security and sustenance.
They have either been misled by “planted” reports by vested interests in the oil anddependent sectors or are merely guilty of “wishful thinking” about oil prices and availablereserves, against the weight of evidence and environmental constraints, even whileholding high positions of responsibility.
Based on its in-depth research into oil prices and supply, TEN Systems has madepersistent efforts over the past 18 months to inform the Petroleum Ministry on this issueand has offered the FuelSaver proposal as a
“path breaking” win-win solution
that willmitigate the government’s genuine concern to protect the common man from fuel pricerise impact and attendant concerns that it will fuel inflation and curb economic growthwithout bleeding the oil companies – crippling their ability to meet our fuel demandsustainably, and in an ironical twist, bleeding the common man, that they seek to protectin the first place.
As of date, crude oil prices have nearly doubled to about USD 100 per barrel in the pastone year and are expected to stay up on the average. “The Indian crude basket touchedan all time high of $ 92.29 a barrel on Wednesday. The basket averaged $ 87.92 a barrelin December ‘o7.” (1)
“The OMCs – Indian Oil Corporation, Bharat Petroleum Corporation and HindustanPetroleum Corporation – are expected to lose Rs. 69,753 crore on sale of petrol, diesel,domestic LPG and PDS kerosene this fiscal. ONGC’s subsidy payout in the currentfinancial year (2007-08) is expected to be Rs. 17,000 crore.” (2)
The Petroleum Minister last week made a statement - “we need to tighten our belts andcurb consumption of oil.” (2)
The situation has indeed reached a state of
that urgently awaits aformal declaration by the Petroleum Minister or the Prime Minister. The following ActionPlan proposed by us must be valued in the light of these “extraordinary circumstances”.
Oil at $100 has Govt mulling options on price hike Friday, Jan 04, 2008
Rs 17,000 cr: ONGC’s subsidy payout for ’07-08