Headline: Fuel Prices in Kerala Surge by Nearly ₹8 in Under Two Weeks, Pinching Household Budgets
Thiruvananthapuram, March 15, 2025 – In a fresh blow to household finances across the state, petrol and diesel prices in Kerala have climbed by approximately ₹8 per litre over the past 12 days, marking one of the sharpest consecutive price hikes in recent memory. The steady upward revision, recorded daily at petrol pumps from Thiruvananthapuram to Kasargod, has left commuters, small business owners, and transport operators grappling with increased operational costs.
According to data from state-run oil marketing companies, the price of petrol has moved from ₹107.56 per litre on March 3 to ₹115.58 per litre on March 14 in the capital city. Similarly, diesel rates have surged from ₹95.42 per litre to ₹103.32 per litre during the same period. Other major cities including Kochi, Kozhikode, and Thrissur have witnessed parallel increases, with prices varying by a few paise due to local taxes and freight charges.
Reasons Behind the Price Spike
Industry sources attribute the sudden escalation primarily to a sharp rise in global crude oil prices. The benchmark Brent crude has been trading above $90 per barrel for the last two weeks, driven by supply concerns from major oil-producing nations and geopolitical tensions in key transit routes. In addition, the weakening of the Indian rupee against the US dollar has made crude imports more expensive, forcing domestic oil companies to adjust retail prices.
“The daily price revision mechanism, which was reintroduced earlier this year, allows oil companies to pass on global cost fluctuations to consumers almost in real time. Over the last 12 days, the cumulative effect has been unusually high,” an official from a public sector oil company explained on condition of anonymity.
Impact on Households and Daily Life
The price hike is being felt acutely by Kerala’s vast network of daily wage earners, autorickshaw drivers, and private vehicle owners. For a commuter who fills a 40-litre petrol tank, the additional expenditure amounts to over ₹320 per fill-up compared to two weeks ago. For a family that uses two-wheelers for school drop-offs and grocery runs, the increased fuel bill is eating into monthly budgets already stretched by rising food prices.
Autorickshaw unions in Kochi and Thiruvananthapuram have voiced concerns, warning that the cumulative price increase may force fare revisions. “We cannot absorb this margin. If the trend continues, passengers will have to bear the burden in the coming weeks,” said K. Suresh, a local union leader in Ernakulam.
Transport companies operating long-distance buses and goods carriers are also feeling the pinch. The Kerala State Road Transport Corporation (KSRTC), which operates on thin margins, has indicated that the rise may compel a review of its operational costs, though no immediate decision on fare revision has been announced.
Government Response and Political Reactions
The state government, while expressing concern over the price rise, has reiterated that it has limited scope to intervene since fuel pricing is deregulated at the central level. Finance Minister K.N. Balagopal told reporters in Thiruvananthapuram that the government would explore ways to provide relief, including possible reductions in local sales tax if the central government lowers excise duty.
Opposition parties have been quick to criticise the price surge. The Congress-led United Democratic Front (UDF) accused the ruling Left Democratic Front (LDF) of failing to control inflation, while the BJP raised questions about the central government’s excise structure. Protests were reported in a few district headquarters, with activists burning effigies near petrol bunks.
What Lies Ahead
Analysts suggest that fuel prices may stabilise if global crude prices cool off in the coming weeks. However, no immediate relief appears forthcoming. The daily revision mechanism ensures that any further volatility in international markets would reflect at the pump within hours.
Consumers, for their part, are left with little choice but to adjust their travel and consumption patterns. Many are turning to carpooling, public transport, or reducing discretionary trips to ease the burden.
Conclusion
The near ₹8 hike in fuel prices over less than two weeks has dealt a significant blow to Kerala’s residents, amplifying pressure on household budgets and transport sectors alike. With global crude uncertainty and a weak rupee continuing to influence domestic rates, policymakers and citizens alike are bracing for a potentially prolonged period of high fuel costs. As daily life adjusts to the new normal, the immediate hope rests on international markets finding stability and on coordinated fiscal measures to offer some semblance of relief to the common man.