Governments that try to create a false economy for oil are not revealing the truth to their people.

About half of humanity, from India to Chile, now benefits from cut-rate petroleum prices. In 2008, these countries will account for all the growth in world oil demand, or an additional one million barrels a day, according to Deutsche Bank. Their consumption will be the highest in eight years.

In China, oil demand is estimated to rise 5 to 10 percent this year, but the government has resisted calls to end price controls. A few other countries – Chile and South Korea – are now moving toward subsidies to appease political pressures.

In Congress, bills to combat global warming would raise costs for oil users, even possibly adding a dollar to gasoline prices. But proposals by lawmakers to relieve those costs with subsidies to consumers would only defeat the purpose of reducing oil demand.

I understand that China is temporarily stopping subsidies in order to get poeple to drive less to cut pollution for the Olympics.