Shiban Khaibri
It is high time the Government takes serious steps in energy management to save this country from plunging into an irretrievable economic morass. It is also a matter of concern that the domestic crude oil output has fallen resulting in Indian refineries importing more than 16 million tones of oil last month as against 14.6 million tones in the same month last year. In other words, instead of an increase, our domestic output product has dropped by 2.4%. Looking to the tailspin of the Rupee in relation to the Dollar, Pound Sterling and other currencies, the import bill is ballooning, creating havoc with our current account deficit and over burdening the common Indian due to a spree of hike in the cost of petroleum products especially the petrol. As on date, the Government was facing an awkward position of the mismatch of the cost of diesel and the realizable price at Rs.12 to Rs.13 per liter. The exchange rate of the Rupee feared to plummet further, the cost of imports was feared to go further high. Declining Rupee gives a lower return to foreign investors and thus discourages foreign investment as it reduces the value of the foreign investment in our country .The frequent hikes would generate a vicious circle of inflationary spirals , skyrocketing prices of the most essential commodities , adulterations, hoardings and undue profiteering. The implementation of the Congress Party’s flag ship of the Food Security bill which is in the process of becoming a part of the statute, was going to further aggravate the problem of our economy as we are to arrange huge funds to manage and procure the food items at a higher cost to be sold at nominal rates of Rs.3, 2 and Re1 to the targeted segments of the urban and the rural population. How can we come out of the whirlpool of the stagnant rate of growth of 4.4% as against a planned 7.5 to 8% this fiscal?
It is reliably learnt that the Ministry of Petroleum is actively considering a proposal of discarding the 24 hour petrol pump services in all cities to enforce some austerity measures and regulate the timing of the sale of the petroleum products. Shall this, however, cut the fuel demand to help slice the imports? Shall the measure not lead to hoarding of the fuel items and selling the same in black market? Shall the move not lead to artificial scarcity and overcharging besides adulteration? Due to these and other host of related reasons, the move has been kept in abeyance for the time being. Petroleum Minister V. Veerappa Moily has advised the people to “tighten the belts” and “to discipline ourselves”. Some drastic austerity measures are being mulled to be announced shortly as the position is getting further complicated due to crisis in Syria and a rise in the price of the crude oil per barrel touching nearly $107 to$ 112 in the international market.
The Petroleum ministry has to explain to the people who are hit by the frequent fuel hike and are now asked to face other hardships that of its availability, let alone its foolproof purity and quantity. The ministry has to enlighten the people about the mess that was created in it during Murli Deora’s tenure of 2006-2011 as the Petroleum Minister. India’s domestic output started slowing down during this period with no prompt administrative and professional treatment. During his tenure, for the first time, state run oil companies did not post profits but landed in losses even on quarterly basis . Was he the best choice for the sensitive and volatile petroleum handling or was he “rewarded” for having “served” the Congress party in Mumbai for as many as 22 years as his appointment as Petroleum Minister was made by replacing Mani Shanker Aiyer which many political observers also believe to be the result of the lobbying by pro America and pro business (corporate) elements which only a few days back, the present Minister Moiley also referred to, as being responsible for neither allowing cut in imports nor encouraging any improvement and increase in domestic output. The matter attains significance. The ministers who took over after Deora, had to a larger extent, attend to the clearance of policy debris. It is a travesty that no decision on much talked of Krishna Godawari exploit has been taken. Like wise, no decision on similar finds has been taken in respect of Mangala oil fields. Those oil fields and areas which have been discovered by the ONGC are yet to start exploration.
The urgency to increase our domestic output is getting necessitated by the fact that our oil imports now comprise more than 85% of the country’s total trade deficit. We have not been in a position to reach a domestic production level of 1 million barrels per day and are unlikely to reach this goal by even 2015 unless some drastic measures are taken as we need 4 million barrels per day for our domestic consumption. Let us at least attempt to bring the level down to 75%, if not to 65% as in early 1990s.
The austerity measures have got to be initiated by the government itself to be followed by the public. Cost of governance in India is Rs.2200 crores per day or Rs.760000 crores per year, both on capital as well as revenue accounts. It is on the high side but in spite of this high cost, we in India do not get better governance and effective administration. We do not participate, rather are not encouraged to participate, in the governance of the country or else why should our elected law makers enjoy fleet of petrol driven AC cars to form their cavalcade whenever they move in the country. The retinue accompanying them too enjoy at the cost of the people. The cost of governance gets increased day in and day out. Our MPs and many state legislators have arranged for themselves many fold hike in their salaries and perks which are as per an estimate, 68 times more than the country’s average salary. Even some very ambitious bureaucrats reminiscent of the British Raj, misuse the facilities by trying to show off the “position” by indulging in ruthless wastage of petrol on avoidable tours and outings. There are others who set an example like Durga Shakti Nagpal, Khemka and others. Why should there be more than required security personnel, police jeeps and cars with red beacons accompanying our leaders? The Supreme Court on 3rd instant has directed the centre and the states to remove sirens from vehicles of VIPs as it is in violation of law. The bench was responding to a petition suggesting that only the dignitaries holding the constitutional posts be provided with the protocol, sirens and security cover. It may be noted that a Judge from Delhi had asked senior Punjab Police officers demanding security cover along with a pilot car, during his visit to the state. The people wishing to join politics must not prove ostentatious in the spending of public funds and must resort to stricter austerity measures. While attending meetings and participating in legislature sessions, they should pool transport to save oil. There is the stricter need for an oil audit rather than oil curfew.
Every effort must be mobilized to save every drop of oil. For domestic exploration, bureaucratic delays and deferment of policy decisions must be eliminated. Joint ventures should be encouraged in exploring oil; private investment must be made lucrative. In this, Reliance Industries and other private players are expected to do better as in the words of Veerappa Moily , we are sitting on the sea of vast reserves of oil and gas. New regions both at home and overseas, must be explored which have a promise of long term potential. Make conservation of oil a national policy with the government officials, leaders and politicians taking a lead and setting an example.
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