After the slowdown in American economy prices of crude oil have shown drastic swing. On Saturday the prices of crude oil reached up to 139 per barrel in New York. In the matter of oil consumption the five premier nations America, Japan, China, India and South Korea have expressed serious concern on record price rise of oil. In the conference of these countries in Aomori(Japan), the ministers of these countries told in a joint statement that drastic increase in oil prices has not only affected the importers of oil, but the producers and exporting countries also. It has led to price rise in crude oil and inflation. In the present scenario there is need to adopt solid measures. There is also need for reducing consumption at the government and private level along with taking other necessary measures. Now, the country would have to face new situations and to get rid of these problems and may have to go for rationing system to control the use of oil. In this direction the government would have to take strict steps. It is noticeable that 44 per cent increase has been recorded this year in crude oil prices. It seems that without rationing it would be difficult to survive. This is the reason that it has become alarming sign for global economy. In this context it can be said easily that we are also not untouched by it. Keeping in view these factors there is need to implement rationing system along with the other measures to control consumption of oil. There is need to make the citizens aware to develop saving tendency among them.