Petrol and diesel prices in Kerala have increased, on average, by ₹8.01 and ₹7.93, respectively, after State-owned oil companies effected yet another hike on Monday, the fourth one in a span of ten days. Though the price of both petrol and diesel rose by around ₹2.85 and ₹2.86 respectively across the State, the actual retail prices varied across districts after factoring in transportation costs from Ernakulam, where refining facilities are located.

In Ernakulam, the petrol price rose to ₹113.52 from ₹110.67 the previous day, while diesel increased to ₹102.42 from ₹99.56. In Thiruvananthapuram, petrol and diesel prices climbed to ₹115.37 and ₹104.18, respectively, from ₹112.53 and ₹101.33. 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 “Oil companies have more or less withdrawn the credit facility offered to petroleum dealers. Indian Oil Corporation appears to be more lenient, allowing dealers to pay for the load on the day of delivery, while the other two insist on advance payment,” said Tony Thomas, President of the All Kerala Federation of Petroleum Traders.

Differing prices

Renju Sasidharan, a petrol pump operator in Vamanapuram, Thiruvananthapuram, said prices varied even within a district depending on transportation. Hence, the price at his pump may differ from one in Thiruvananthapuram city, about 30 kilometres away, he said.

Notwithstanding the hike, consumption has not dropped. In fact, it seems to be on the rise, as motorists appear intent on filling up before the next possible increase. Even petrol pumps operated by private companies have not experienced a drop in consumers despite charging more than State-owned outlets. “Many customers seemed unaware of the hike, as they filled for the same amount without realising they received a lower quantity compared to the previous day,” said a petrol pump manager in Kochi city.

Suspension of services

The Bus Operators Federation has threatened to suspend services if the hikes continue unabated. Even otherwise, private buses are staring at a revenue drop of almost half, with free travel for women in KSRTC buses set to begin on June 15. Private buses will struggle to meet fuel expenses and may be forced off the roads, said a statement issued by federation State president K.K. Thomas and general secretary Hamza Erikkunnan. “A mere fare revision would not help the private bus industry, the largest employer in the public transport sector, to survive, given the huge increase in spare part prices as well. The government should protect the industry by providing subsidised fuel to private buses,” they demanded.

For the hotel industry, the timing could not have been worse, already reeling under a recent ₹993 hike in commercial cooking gas. “We cannot afford another increase so soon after raising prices following the gas price hike, as it would drive away consumers. We will wait till next month, and if the situation does not improve, we will adopt strong protest measures such as a Parliament march,” said T.J. Manoharan, State Secretary of the Kerala Hotel and Restaurant Association.

K.A. Anoop, State President of the Truck Owners Association, said fuel price hikes rarely benefited truck owners because of multiple factors. “Overloading, which makes a mockery of the per-tonnage fare system, continues unabated. Intra-State services operated by inter-State operators also put us at a disadvantage due to low tax regimes in their States and lower salaries paid to drivers there. In contrast, our drivers earn almost the same amount as per-trip bata,” he said.