This refers to the report "Petrol price raised by Rs 2.35/l, Moily makes case for more" (September 1). Almost similar to the impact of changes in base interest rates on the cost of funds across sectors, the periodic hike in fuel prices has a direct impact on the prices of all products and services. This price hike is a way to subsidise the losses incurred by oil companies. As long as a rational costs-prices-wages-income policy is not in place and unemployment remains at ugly levels, problems of governance will persist. It is evident from the pattern of asset-formation that workers in lucrative sectors such as services, mining and IT are paid starvation wages. While everything else can be left to the mercy of market forces, the government has a social responsibility to protect the employees' interests. The same applies to the prices of food articles and other essential items and services. The food security Bill or employment guarantee schemes are just "first-aid" solutions.
M G Warrier Mumbai
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