It’s undeniable that the prices of essential commodities have seen a steep aggravation in the past quarters of this financial year. The Government links most of it to an outcome of post Covid dementia in the Indian economy. With the outstandings of fuel prices directly wooing the entire plethora of FMCG (fast moving consumer goods) market prices, the end consumer is being held at ransom. Yes, with inflation, the WPI (Wholesale Price Index) and CPI (Consumer Price Index) have gone all-time high and the perils continue for the middle and lower-income families who are bound to cut down on essential purchases and medical expenses.
Post pandemic, when a conducive atmosphere from sheer economic point of view has returned to other countries, India needs to take immediate stock of what hasn’t worked out in reviving the pace of economic enhancements here. If the mother of all evil is higher fuel prices, the onus is on the Government to disseminate modern day inventories in order to increase the supply locally at a rampant pace.
The United States has already done it, i.e., by curtailing most of its oil dependency on the Middle Eastern countries, and upping the ante in the production of shale oil locally. As per experts, production of shale oil has huge potential in India too.
Thus, at this crucial conjuncture for India, production and regulation of oil and gas requires a comprehensive relook by the Centre, so that, till the nation is fully prepared to go carbon neutral, which is by 2050, India wouldn’t have to fall into the vicious trap of fuel inflations coupled with its errant threat to impact economic growth of the nation every financial year. Thus, a review policy on India’s indigenous fuel production is the need of the hour.
This excerpt by Banraj Kalita is a published “Letter to the Editor”, Page 4, of the Assam Tribune Newspaper dated 20th October 2021.