The only cure to spiralling crude oil prices is demand management

Even at current levels of oil prices, there seem to be no dearth of buyers- including countries like India and China- and of course, the US. Known oil and gas reserves may not last for more than another 50 years- and if production were to increase, even this time horizon could reduce. With the subsidy on diesel, petrol and cooking gas, what is happening is a forced redistribution (transfer) of wealth from the oil distribution companies to consumers. Both pay the same prices for fuel; for one, the rising prices makes a much bigger dent on his/her monthly budget than for the otehr. Another critical element of demand management for oil is the creation of quality mass transit infrastructure at adequate service levels. If people use their cars to get picked up and/or dropped, their cars will consume a good amount of fuel. read more

[Tags]oil, fuel, prices, cars, fuels, good, oil prices[/Tags]

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