THIRUVANANTHAPURAM: The price of diesel crossed the Rs 100-mark in Kerala on Saturday as fuel prices increased for the fifth consecutive day. The prices at Parassala in Thiruvananthapuram and Pooppara in Idukki were Rs 100.11 and Rs 100.05 per litre, respectively.
People living in districts sharing the border with Tamil Nadu have started refuelling from that state as the prices are lower there. The DMK government had slashed fuel prices by Rs 3 in August this year. The petrol price had crossed the Rs 100-mark in June.
The number of people visiting Tamil Nadu pumps is low and hence not a concern for traders in the state, according to Sabarinath, national vice-president, Federation of All-India Petroleum Traders. "The price rise really worries us. The inclusion of petroleum products in GST would have helped people and dealers alike. The exorbitant increase in prices is causing hardship to dealers," he said.
"For instance, the evaporation loss, an estimated one percent in one litre, is Rs 1 for the dealer when the price touches Rs 100 a litre. The dealer commission has not been revised for past six years," he said.
Meanwhile, the state government is also making good earnings from the price hike. Its tax revenue from the sale of petrol and diesel saw a rise of 54.2 per cent and 62.2 per cent respectively between April and August this year.
The tax from petrol sales was approximately Rs 1,280 crore during the first five months of this fiscal. The corresponding figures for financial years 20-21 and 19-20 were Rs 830 crore and Rs 1,290 crore, respectively.
Over Rs 1,200 crore has been collected from diesel sales so far this financial year. The figures for the previous fiscals were Rs 740 crore and Rs 1360 crore, respectively.