Fuel prices in Kerala rise by around ₹8 in less than a fortnight

Petrol and diesel prices rose by ₹8.01 and ₹7.93, respectively, on an average in Kerala after state-owned oil companies announced another hike in ten days on Monday. Although prices of both petrol and diesel increased by ₹2.85 and ₹2.86 respectively across the state, actual retail prices varied across districts after factoring in transportation costs from Ernakulam, where the refinery facilities are located.

In Ernakulam, petrol price increased to ₹113.52 from ₹110.67 the previous day, while diesel price increased from ₹99.56 to ₹102.42. In Thiruvananthapuram, petrol and diesel prices increased from ₹112.53 and ₹101.33 to ₹115.37 and ₹104.18 respectively. In Kozhikode, petrol and diesel were priced at ₹113.94 and ₹102.86 on Monday compared to ₹111.09 and ₹100.01 on Sunday. “Oil companies have more or less withdrawn the credit facility offered to oil dealers. Indian Oil Corporation seems to be more tolerant, allowing dealers to pay for the cargo on the day of delivery, while the other two insist on advance payment,” said Tony Thomas, President of the All Kerala Petroleum Traders Federation.

different prices

Renju Sasidharan, a petrol pump operator in Vamanapuram, Thiruvananthapuram, said prices vary even within the district, depending on transportation. Therefore, the price of his pump may be different from the price in Thiruvananthapuram city, about 30 kilometers away, he said.

Despite the increase, consumption did not decrease. In fact, the rate appears to be increasing as drivers appear intent on fueling up before the next possible increase. Even at gas pumps run by private companies, there has been no decline in consumers despite charging more than government-owned outlets. “Many customers seemed unaware of the price hike as they refilled the same amount of fuel without realizing they were getting a lower amount compared to the previous day,” said a petrol pump manager in Kochi city.

Suspension of services

The Federation of Bus Operators threatened to suspend services if the increases continue unabated. Otherwise, there will be almost half a revenue loss in private buses and free travel for women in KSRTC buses will start on June 15. In the statement made by Federation President KK Thomas and general secretary Hamza Erikkunnan, it was stated that private buses will have difficulty meeting fuel expenses and may be forced to withdraw from the roads. “Given the huge increase in spare parts prices, fare revision alone will not help the private bus sector, which is the largest employer in the public transport sector, to survive. The government should protect the sector by providing fuel subsidy to private buses.”

The timing couldn’t be worse for the hotel industry; is currently reeling from the recent ₹993 increase in commercial cooking gas. TJ Manoharan, State Secretary of the Kerala Hotels and Restaurants Association, said, “We cannot afford another hike immediately after hiking the prices following the hike in petrol prices as this will alienate consumers. We will wait until next month and if the situation does not improve, we will take strong protest measures like a March on Parliament.”

Truck Owners Association State President KA Anoop said increases in fuel prices rarely benefit truck owners due to multiple factors. “Overloading continues unabated, making a mockery of the pay-per-tonnage system. Intra-state services run by interstate operators put us at a disadvantage due to the low tax regimes in their states and the low salaries paid to drivers there. In contrast, our drivers earn almost the same amount as bata per trip,” he said.