Inflation in India is very sensitive to oil prices. Crude oil prices in the international market is very volatile. Coupled with rupee depreciation, it is causing oil companies under pressure to increase petrol prices. Now the question in front of us is how to deal with high oil prices.
We definitely have to find alternative sources of energy.3 yrs back the same quantity of petrol could be bought for half the price.Secondly, with the middle east crisis, uncertainty in the economic world has further raised the fuel prices. The goverment of India should invest into other types of power stations such as hydroelectric, wind energy etc.This would reduce our dependence on other countries in the long run ,also save or country foreign exchange
We certainly can reduce petrol consumption by imposing rules and laws discouraging the use of private vehicles. But for that to happen we need to improve public transport. Delhi, mumbai has better public transport. But cities like pune, hyderabad has very poor public transport and common people have no other choice than to use their own vehicles and when petrol price rises, it pinches them badly..
Sale of more vehicles is the sign that we are growing and people have good purchasing power. But at the same time we need to find a way to reduce the number of vehicles on the road. Cities like Mumbai, delhi, bangalore are notorious for traffic jams. We need to create develop more cities. Transform small towns into big centers so that these already congested places have some air to breathe...