Rising Oil Prices

The oil prices have been raised in India by Rs 3 on petrol and By Rs 2 on diesel. The world prices are falling down after the initial hike.

I don’t understand that when the petrol price is America is 3$ a gallon (4 liters), why the petrol is so expensive in India? The American price comes out to be around 30 Rs per liter. First the government can’t provide decent public transportation, roads and parking and then it charges a high tax on the petrol.

Petrol prices can’t rise very high, as in the American elections the price of gas (petrol) is an important issue. Government can loose the power if the prices go high. Also if the petrol prices rise very high the development for Hybrid cars and alternative fuels will become even faster, this might bring an end to the era of dependency on petrol (oil) for transportation.

Auto LPG is a fuel that is good for the engine and also cheaper than petrol/diesel. It seems only some supreme court decision will make the government think about it.

Another thing is why don’t we add more busses to the routes that run on full capacity almost all day? And why can’t we improve the quality of the buses that run. For e.g. running an AC in the bus won’t raise the cost of transportation by more than 20%. So why not Raise the ticket cost by more 20% and introduce better buses??? Better buses will make those people shift to buses that go in their cars.