US blames India,China for Oil Price Hike

White House has pointed a finger at India and China for the spike in oil prices even as it sought to clarify president George W Bush’s remark about Indian middle class contributing to rising food costs. A presidential spokesperson on Monday also stuck to its guns on bio-fuels asserting that US policy of promoting corn-based ethanol in motor fuel supplies was having only a “small impact” on world food prices.

“I would point out that obviously the demand for oil is growing around the world,” spokesperson Scott Stanzel told reporters when asked to comment on oil price hitting a record $120 a barrel Monday. “Many developing nations like India or China are having greatly increased demand, which obviously is having an impact on price,” he said.

Asked to clarify Mr Bush’s remark last week that growing prosperity of India’s large middle class is contributing to rising food prices around the world, Mr Stanzel said: “I can certainly clarify that. We think it is a good thing that countries are developing, that more and more people have higher and higher standards of living.”


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