Does India need an energy policy ?

The price of oil has reached $135 per barrel and I haven't seen any urgency in addressing the dependency on oil . Politicians are more interested in winning the coming election while the common man is getting squeezed. Indian oil is losing about 400 crores a day to subsidize oils products thus cushioning us from the real impact of increase in oil cost.

Here are a few reasons why we need one real quick

- Trade deficit will widen with increase in oil price . The situation is going to get worse with increased number of automobiles coming on the streets

- Oil is input to lot of items and with input cost increasing, cost of goods are going to skyrocket . The dreaded inflation .

- Above two will work to reduce growth and could potentially cause stagflation.

- Poverty will be rampant as low income folks will be priced out of basic necessities

- Public sector companies will soon not be able to subsidize the cost of oil as they are losing too much money too fast . Once they remove the subsidizes the real impact of oil price increase will be felt and it will be a disaster

Add all these up and you can write the fate of our nation. Now tell me if this is serious or not.