An oily task ahead

Sep 26, 2013

The oil minister’s fuel conservation drive is bound to receive a mixed reaction. While his concern about India’s surging oil imports and its effect on the current account deficit is understandable, it also stands to reason that the Union and the states are the biggest users of diesel, which by virtue of being heavily subsidised, with the under-recovery figure per litre anywhere up to `14, causes the greatest heartburn to the country.
Bus days, car pools and various other conservation measures have been tried around the world but the ground reality is consumption catches up with projected demand very soon after everyone pays lip sympathy to the feckless manner in which fossil fuels are being burnt for private transportation. In India, the politicians are seen to be the biggest culprits as they keep expanding their participation in public functions and cannot seem to travel anywhere without a lengthy convoy.
With imports of crude oil likely to touch 170 million tonnes this fiscal even as the rupee has been sliding vis-a-vis the US dollar, the only way out would be to improve the public transport infrastructure. That may take years and an investment of trillions of rupees. The energy needs of a developing economy are not easily curtailed, as the oil minister is certain to find out soon enough. Tokenism in conservation by the defence, railways and state transport undertakings, besides the movement of politicians and bureaucrats, is not going to help. Even so, they must demonstrate they really feel the need to curb consumption.

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