Oil Futures

  • 15/05/2008

  • Times Of India (New Delhi)

Rationing oil cannot address the larger issue Any proposal to ration oil in view of rising global crude prices could turn out to be a disaster. Imposing a formal allocation system to streamline supply and demand of petrol and diesel would, instead of resolving the problem, encourage hoarding and black-marketeering as happened in the case of kerosene. Then there are logistical problems. On what basis would the rationing system work? Since petrol and diesel are used largely for transportation