Saturday, August 31, 2013

Another blow to negative sentiments

The move to hike the prices of fuel at this critical juncture will only help to add fuel to fire although the need is paramount . The sentiments are negative and what ever may be the justification, such a move will not be easily acceptable as it may add to inflation and inflation expectations. It would be ideal for the Government to defer this move till such time the rupee stabilizes and the price of Crude Oil in international market also settles down from its present volatility. It may be tough for the Govt to defer the decision, but it will help to improve the sagging sentiments a little which is also essential to stabilize the markets.

Dr.T.V.Gopalakrishnan

(This comment is in response to the news report fuel hike in the offing in Business line dated 31/8/13)

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