Can Oil Prices Affect Economy?

From the year 1996 till date, there has been steady increase in oil prices. The increased prices can affect not only India but all over the world. Price of essential commodities shoot up So, inflation rate is going up at an alarming rate.

There are two options for the Government to act swiftly. Number one is to increase domestic oil production and the second one is to find out alternative source of energy. Of course, several countries have already taken steps in this regard. However, the progress is too slow to cope with the drastic increase in oil prices. Hence, there’s an urgent need for mobilizing resources to fulfill these tasks wholeheartedly.

Extensive Research Centre must be established to explore new oil fields. It’s essential to increase the oil production from the existing oil wells. If we make consistent efforts, positive results can be obtained.

We need to use modern technique to explore oil new places. By way of finding new oil fields, the potential for increasing the domestic production of oil can be increased manifold.

Finding alternative source of energy is the second option. Vehicles operated on electric enegy have become popular. However, present technology is not in a position of catering to the needs of manufacturers. Why don’t we initiate research to develop the use electrically operated fuel?

Consumption of petroleum products can be reduced progressively, if alternative fuels are use to operate vehicles. Developed countries like USA, UK and other countries must allocate funds for finding out alternative source of energy. This should help in reducing cost of electric energy, so that this can be make affordable to common man.