Thiruvananthapuram: Kerala Chief Minister V D Satheesan on Tuesday said the state government would take a decision on possible relief measures to ease the burden of rising fuel and LPG prices after assessing their overall economic and social impact.
Replying to an adjournment motion notice moved by the opposition LDF in the Assembly, Satheesan said the concerns raised by the opposition were "partly correct" and acknowledged that frequent increases in petrol, diesel and LPG prices were adversely affecting people.
"The major issue before the state government is the recurring increase in fuel prices. Petrol, diesel and LPG prices are being raised frequently. There were four hikes after May 15 alone and indications from Delhi are that prices may go up further. There is uncertainty over the situation," he said.
The CM said the government was examining the impact of the price rise on households and the economy and would take an appropriate decision after waiting for a few more days.
"We need to see an end to this uncertainty. We will wait for a few more days and then take a decision," he told the House.
Satheesan said the previous Congress-led government under Oommen Chandy had foregone additional taxes on petrol and diesel, resulting in a revenue sacrifice of around Rs 619 crore.
In contrast, he alleged that the previous LDF government earned crores of additional revenue from fuel taxes without providing any relief.
He also accused the previous government of "failing" to effectively intervene against inflation, claiming Kerala had witnessed the highest inflation levels in the country during that period.
Satheesan said the previous LDF government had imposed a fuel cess in the name of funding social security pensions at a time when fuel prices were at its peak.
"That was a wrong decision," he said.
The Chief Minister also referred to remarks made by senior CPI(M) leader and former minister T M Thomas Isaac during the first Pinarayi Vijayan government.
Satheesan said Isaac had remarked, "we will not commit that folly" when the opposition had demanded that the government forgo the additional revenue accruing to the state due to fuel price hikes by the Centre.
He asked whether the present LDF opposition was now demanding that the UDF government take the same step which it had earlier termed as "folly".
Moving the adjournment motion, senior CPI(M) leader and former Finance Minister K N Balagopal said the steep increase in petrol, diesel and LPG prices had triggered a rise in the cost of living and adversely impacted sectors like hotel industry across the state.
He urged the government to forego part of the additional revenue generated from fuel taxes to provide immediate relief to the public.
Balagopal argued that waiting for fuel prices to decline before acting was impractical and said international crude oil prices had fallen even as domestic fuel and LPG prices continued to rise.
He also called on the state government to take up the issue strongly with the Centre, alleging that the Union government was burdening consumers through repeated fuel price hikes.
He said previous LDF governments had provided tax concessions in 2018 and 2022 and demanded that the present government consider extending LPG subsidies and other relief measures.
Leader of Opposition Pinarayi Vijayan described the government's approach as "unfortunate" and reiterated the demand that the state forgo additional revenue from fuel price hikes to reduce the burden on the people.
Vijayan accused Satheesan of adopting a different stand after assuming office as Chief Minister.
The veteran said that when Satheesan was the Leader of Opposition, he had repeatedly blamed the state government whenever the Centre increased fuel prices but was now unwilling to criticise the union government over the latest hike.
After Speaker Thiruvanchoor Radhakrishnan disallowed leave for the adjournment motion citing the Chief Minister's reply, the LDF members staged a walkout from the Assembly.