There are a lot of protests against increase in the prices of petrol and diesel in India. The prices need to be higher than even the increased prices for the following reasons.
- India imports the raw material for fuels, viz crude oil. Crude oil reserves in the world are so low that they may last only for a few decades. Hence this needs to be used as little as possible. To discourage people from avoidable use, the prices have to be kept higher than what they are now.
- Lower consumption would mean low pollution
- While the prices of petrol and diesel in many countries are around the enhanced prices in India, in some countries these are much higher. The prices are higher there to discourage use
- Higher prices will encourage vigorous efforts for invention of viable, alternate and cheap fuels.
- Automobiles production- two wheelers and four wheelers are increasing so fast in India, that, if the prices are not high, India may have to import larger quantities leading to depletion of world reserves of crude oil. Automobile companies should be forced to undertake research and produce fuel efficient vehicles. The increase in prices can be absorbed if the fuel efficiency of vehicles increases even by just 5%.
- Unutilized or underutilized cattle power, for drawing water from wells, for transporting goods over short distances etc could be utilized
- People would start using bicycles and solar powered two and four wheelers
- Some people will also be forced to walk short distances, instead of using vehicles. This would be good for the health of the people.
- To encourage production and use of biogas and to increase the use of firewood for which demand has come down, it is necessary to increase the price of LPG