Why, then, are oil prices so high?Unsurprisingly, this is just wrong. The reason Chinese and Indian demand is so high is precisely because they haven't removed price controls - Chinese and Indian consumers are paying artificially low prices for gasoline, which means they're buying more oil than they otherwise would.
There is no esoteric reason. It is plain old supply and demand. With the economies of huge nations like China and India developing more rapidly, now that they have freed their markets from many stifling government controls, more oil is being demanded in the world market and there are few new sources of supply.
If India and China removed their price controls (or "liberated" them, as the GOP would say) gas consumption would almost certainly plummet. Which would bring prices down, temporarily.