Headline: Kerala Hit by Sharp Fuel Price Hike: Petrol and Diesel Up by Nearly ₹8 in 12 Days
By [Your Name/News Desk]
THIRUVANANTHAPURAM: In a development that has sent shockwaves through households and the transport sector across Kerala, fuel prices have surged by approximately ₹8 per litre in less than a fortnight. The sharp increase, recorded between the last week of May and the first week of June, has pushed petrol prices past the ₹107-mark and diesel beyond ₹94 in major cities, including Kochi and Thiruvananthapuram.
This sudden spike marks one of the steepest short-term rises in recent memory, straining household budgets and reigniting concerns over inflation in the state.
A Rapid Climb at the Pumps
Data from the Indian Oil Corporation shows that petrol prices in Kochi, which stood at ₹99.45 per litre on May 25, crossed ₹107.40 by June 6. Similarly, diesel prices jumped from around ₹91.50 to ₹94.70 during the same period. The trend was consistent across all districts, with smaller towns like Thrissur and Kozhikode also witnessing a near-uniform hike of ₹7.80 to ₹8.10 per litre.
The price revision comes on the back of a sustained rise in global crude oil prices, which have breached the $83 per barrel mark, combined with a weakening rupee against the US dollar. State-owned oil marketing companies (OMCs) have been revising retail prices daily, aligning with the dynamic pricing mechanism adopted years ago.
Ripple Effects on Transportation and Daily Life
The steep increase has directly impacted Kerala’s heavily transport-dependent economy. Autorickshaw drivers, private bus operators, and cab aggregators have already begun informal discussions on fare revisions.
“I spend nearly ₹2,000 more on fuel every week now,” said Rajan K., an autorickshaw driver in Thiruvananthapuram. “Passengers are complaining, but I cannot run on loss. If prices stay this high, we will have no option but to increase minimum fares.”
Households in suburban and rural areas, where two-wheelers and cars are a necessity due to limited public transport connectivity, are feeling the pinch. Monthly fuel budgets have expanded by over 10% for many families, squeezing disposable income for essentials like groceries and medicines.
The Kerala State Road Transport Corporation (KSRTC), already reeling under financial strain, is expected to face higher operational costs. Transport department officials have indicated that a fare revision may be unavoidable if the situation persists.
Government Response and Tax Component
State Finance Minister K.N. Balagopal, while acknowledging the burden on the common man, reiterated that the price hike is largely due to global factors and central taxes. Kerala currently levies a Value Added Tax (VAT) of approximately 30% on petrol and 27% on diesel, one of the highest rates among Indian states.
“The central government collects around ₹30 per litre in excise duty. The state’s share, while significant, is used for welfare schemes. We cannot reduce revenue further without affecting public services,” the minister stated during a press briefing earlier this week.
Opposition parties, including the UDF, have criticized the state government, demanding an immediate reduction in VAT to provide relief. Protests have been organized in several districts, with Congress workers and BJP members holding demonstrations at fuel bunks.
What Lies Ahead?
Market analysts remain cautious. With the OPEC+ nations maintaining production cuts and global demand showing signs of recovery, crude prices are expected to remain elevated in the near term. This suggests that retail fuel prices in Kerala may stabilize at current levels but are unlikely to drop sharply in the coming weeks.
For now, the message for Keralites is clear: Plan your travel, monitor daily price fluctuations, and brace for continued pressure at the pump.
Conclusion
The nearly ₹8-per-litre surge in fuel prices over the past twelve days has tightened the financial belts of millions across Kerala. From commuters and small businesses to the state-run transport network, the impact is widespread and immediate. As global uncertainties and domestic tax structures continue to influence pump prices, the state finds itself at the crossroads of economic necessity and consumer relief. Until a structural solution emerges, the daily commute in God’s Own Country is set to cost significantly more.
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*Source: https://www.thehindu.com/news/national/kerala/fuel-prices-in-kerala-rise-by-around-8-in-less-than-a-fortnight/article71020420.ece*