The Paris-based International Energy Agency (IEA) has suggested that India should phase out fuel subsidies in order to moderate demand. The IEA and some other similar organizations have been saying that the recent worldwide increase in the prices of fuel is largely due to increased demand in countries like India and China. They’ve also said that these countries’ policies for subsidizing fuel are to blame for fuel price hikes.
On its part, OPEC says that Asian countries are not to blame for the price hikes. Instead, says OPEC, it’s market speculators and the weakening dollar which are responsible for the record rise in oil prices, which touched US$147.40 a barrel in July this year.
IEA, however, continues to insist that India should do away with fuel subsidies...Read More