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G.K. Nair

Kochi , Sept. 2

THE recent hike in petrol and diesel prices will have a negative impact on the prices of essential commodities in Kerala, as the State depends on its neighbours for grains, pulses and even vegetables.

Mr Bharat N. Kona, President, Indian Chamber of Commerce and Industry, told Business Line: "The steep hike in these fuels will add to the strain on the industry and trade."

The diesel price hike will jack up the operational cost of truckers and passenger carriers, which will reflect on the prices of commodities and passenger fares, he pointed out. "The impact of the diesel price rise is rather severe in a deficit State such as Kerala. It is, therefore, high time to seriously think of ways and means to stabilise fuel prices at reasonable levels with suitable modifications in the Central and State levies," he said.

Vendors and shop owners would raise prices on the pretext of an increase in transportation cost following the hike in diesel prices, consumers pointed out. However, shopkeepers clarified that unless truck operators raised their rates, "we will not increase the prices".

This seems unlikely with one lorry owner stating that increased fuel cost and high rate of road tax in the State would force the truck operators to raise their charges.

Further, private bus operators said the increase in the price of automobile fuels would lead to an increase in operational costs at a time when the private bus operation in the State had become a non-viable proposition.

If the charges are increased, it would have a cascading effect on the prices of steel, cement, consumer durables, essential commodities, etc., an industry source pointed out. It would also turn out to be a burden on private vehicle users also whose monthly budget would have a negative impact, a Government official said.

The price of petrol has gone up to Rs 35.11 per litre in Thiruvananthapuram while diesel price has been hiked from from Rs 21.30 to Rs 22.69.

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