“We are in the middle of a dramatic change in the world energy price situation... in the last two years, we have seen a sea change... today increasingly the perception is that we better get used to high energy prices,” he said at an Indira Gandhi National Open University (IGNOU) function.

It is important to get used to high energy prices, he said. “It is very difficult to persuade any body to be efficient in using the product if the product is not properly priced... if the real prices of energy is high it is better for the country to pass on that price combining it with some targeted subsidy for those who need it rather than to refuse to pass on that prices and simply subsidies it,” Ahluwalia added.

Though India has diverse energy resources including coal, it would be key to develop an appropriate energy strategy in order to develop rapidly. At present, global crude oil price stands at 143 dollar per barrel.