Trade and industry are bracing for tough times ahead, as the decision of State-owned oil companies to raise fuel prices for the fourth time in 10 days on Monday threatens an overall increase in the prices of essential commodities.

It has proved a double whammy for sectors such as hotels and construction, which were already reeling under an exorbitant hike of ₹993 in the price of commercial cooking gas cylinders that came into effect towards the end of last month. The successive fuel price hikes have impacted other sectors as well.

The bustling vegetable market in Ernakulam, primarily dependent on supplies from neighbouring States, is preparing for an inevitable price rise, with transporters likely to increase their charges shortly. Supplies to the market mostly come from Oddanchatram and Pazhani in Dindigul district, Coimbatore, and Cumbum in Theni district of Tamil Nadu, and Bengaluru and Mysore in Karnataka.

“We have a year-long agreement with lorry operators, and hence the recent fuel price hikes haven’t yet affected us. But the frequent hikes may force them to revise the agreement, as it is a matter of survival. Vendors outside the market who don’t have long-term agreements but hire lorries on demand are already feeling the pinch,” said K.K. Asharaf, Ernakulam Market Stall Owners Association.

The market receives up to 14 loads of supplies on Mondays, engaging as many lorries. He said that except for the prices of a few select items like beans and ginger, which have touched ₹100 per kg and ₹120 per kg respectively, an overall price rise hasn’t yet set in, though it seems not far away.

Chicken stall operators remain apprehensive that the fuel price hike may push up the price of chicken, which has only recently come down after a period of shortage in supply. “Prices had risen to ₹188 a kilogram before supply normalised with the onset of summer showers that eased the excessive heat adversely affecting production. It has now come down to ₹170. If fuel prices continue to rise, it may lead to a corresponding increase in operational costs, driving up prices again,” said O.S. Shajahan, Ernakulam district secretary, Kerala State Chicken Vendors Association.

The emergence of Chalakkudy as the main supply point for the State, considerably reducing dependence on Tamil Nadu, remains the sole relief.

Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES) rues the overall rise in prices triggered by the fuel hike.

“Prices of select items, including plastic, have increased by 25% to 50%. The fluctuations caused by frequent hikes have made long-term supply agreements nearly impossible. Forget year-long agreements, we are not in a position to even provide supply quotations for a month,” said A.R. Dayanand, general secretary, Kakkanad chapter of KVVES.