OFLATION and Crude Oil demand Supply

What is this? Yes. I just thought (this is my term, not mentioned anywhere) inflation caused by oil is called OFLATION as inflation in many countries crossed double digits because of current oil prices during last 3 to 4 months. Most of the Asia Pacific countries are having high inflation with high rise of petrol and diesel.
There is a prediction that crude oil prices will come down to $100 per Barrel. Interesting? You know why? Citizens in many countries have adopted cautious approach to use of Fuel. In fact in USA, consumption has decreased after Gas crossed $4 per Gallon. Well. Indians are there. They still consume as much as possible. You know why? Our Indian government is readily subsidizing the petroleum products. What a good Governance? But at what cost? We are losing the funds which are supposed to be used for other developmental activities apart from issuing oil bonds to the oil companies like OIL, HPCL and BPL.
Why cannot we adopt an approach across the nations on fuel supply and demand? Price band is one mechanism which Our finance minister suggested. Also, talking about minimum consumption (as oil producing countries need not worry about consumption) and maximum price limit (protecting oil importing countries from the alarming price rise).
I am sure most of the governments are proposing alternative fuels and encouraging citizens to adopt two way approaches to solve this problem. One is conserve oil products by limited usage and second is focus on alternative fuels.
In the age of fast tracking, by proposing alternative fuels, we can go ahead but not at the cost of other products or viability. For e.g. fuel cells are more expensive than conventional oil. Alcohol based fuels are cheaper but they eat into some of the agricultural land for production of alcohol based fuels.
So, every citizen need to understand and so are the governments to solve this non terminal problem of oil prices and economies of the countries.