Letters to the editor

Written by The Financial Express | Updated: Jun 29 2011, 07:38am hrs
Petroleum price hike

The common man has once again been administered a severe blow in the form of increase in prices of LPG, kerosene and diesel. This oft-repeated price increase has been fuelling inflation. The compulsion of the government arising from the under-recoveries of companies is understandable. But even the current hike cannot fully offset the under-recoveries. So the problem of under-recoveries will continue to persist. The inflation, now at 9%-plus, is likely to surge ahead. RBIs action to tame inflation is rendered ineffective due to the periodic rise in petroleum prices. It has to seriously think of overhauling its petroleum policy.

KV Seetharamaiah

Hassan (Karnataka)