Suresh Prabhu’s three prescriptions to tackle challenge of rising oil price

NEW DELHI: Given the high volatility in crude prices globally, India cannot depend on imported fuel for long and, hence, there should be a strategy for more oil exploration at home, feels Civil Aviation Minister Suresh Prabhu. Manufacturing, generating and refining more fuel at home is one of the key strategies, the minister feels, should help ease the woes of the common man. And the work has already been put in place.

Secondly, the minister says Indian should focus on creating a non-oil economy over time, by putting heavy emphasis on renewable energy. The government is aiming for 175,000 MW clean energy generation, Prabhu said in an exclusive interaction with ETNow.

The third plan, the minister, said is to promote use of electric vehicles. Transportation, mobility requires a huge amount of fuel. Hence, the emphasis should be to slowly and gradually shift to electric vehicles. These measures will indeed take time, but will benefit the people, the minister felt.

On rising crude prices, Prabhu said cartelisation results in artificially jacking up prices, which is detrimental to interests of not only consumers but also producers themselves.

He said the government was not looking to give subsidy, as it will again impact the poor because of fiscal imbalance. He said the government was working out the best possible solution to protect people from simmering crude prices.

The minister said the entire fuel basket should be included under the GST regime. “I feel it as a consumer of it, and as an aviation minister, if you bring aviation fuel along diesel and petrol into the ambit of GST, it will help everybody. This is one solution that really needs to be looked at. For that, we have to take all the states on board,” the minister said.