India is a pretty small player in the global market when it comes to fuel I mean oil... until now India has only 3 percent to its credit out of the world’s total oil consumption, but this is not the end.



India imports its 70 percent fuel from outside oil rich nations; so in order to overcome the rising crude oil prices, we have to face soaring fuel prices at home as well.



The Govt. has few suitable ways out for this problem. Reducing taxes at state level is good way to reduce prices.



Business Standard has a unique and intelligent way. Why doesn’t the government...

1. ... mandate fuel economy standards for all vehicles. China is setting tough standards and in particular is tightening controls on the infamous SUV fleet - it has mandated an increase in fuel efficiency of 10 per cent by 2008.



2. ... we must make sure that we discourage the use of cheaper diesel for private vehicles, which may be more fuel-efficient but end up polluting more. We can do this by tightening standards of fuel efficiency on the diesel fleet and putting in place fiscal disincentives on its purchase.



3. ...we must invest heavily - and I mean heavily - on public transport and railways. This is our insurance package.......

However, I doubt the government will duly oblige to this excellent suggestion. So-called ‘vested interests’ will see to it.