Everyone will have to bear the implications of adhocism in policy. This must not, however, take away from the urgency of mitigating the longer-term consequences. Even amid the twists and turns of current policy my hope is that the government will look to placing petroleum policy within the bounds of a more sensible economic and pricing framework. What should be the drivers of such a framework?

First, we should accept that high oil prices are here to stay. This does not mean we will not see sharp declines from present levels. What it does mean is that we will not see prices stabilising at levels significantly below a triple digit number. Second, we must create a mechanism that leads to a ‘graduated’ reduction in subsidies, an orderly alignment of domestic prices to international levels and a more efficient disbursement of financial support to the poor. Third, we must reverse ‘dieselisation’. And finally, we must recognise that the sine qua non of energy security is a robust and competitive domestic petroleum and energy sector.

The writer is chairman of the Shell Group of companies in India. Views are personal express@expressindia.com