The gradual increase in petrol and diesel prices is causing concern in the business and industrial circles of Kerala

Business and industry are bracing for tough times as state oil companies decide to raise fuel prices for the fourth time in 10 days (file image) | Photo credit: SUDHAKARA JAIN

Business and industry are bracing for tough times as the decision by state oil companies to raise fuel prices for the fourth time in 10 days on Monday threatens an overall rise in basic commodity prices.

It turned out to be a double whammy for sectors such as hotels and construction, which were already reeling from the exorbitant ₹993 hike in commercial cooking gas cylinder prices that came into effect late last month. The gradual increase in fuel prices also affected other sectors.

Primarily dependent on supplies from neighboring states, Ernakulam’s bustling vegetable market is bracing for an inevitable price hike, with transporters likely to hike their charges soon. Supply to the market mostly comes from Oddanchatram and Pazhani in Dindigul district, Coimbatore and Cumbum in Theni district in Tamil Nadu and Bengaluru and Mysore in Karnataka.

“We have a one-year agreement with truck operators and hence the recent hike in fuel prices has not yet affected us. However, frequent hikes may force them to revise the agreement as it is a matter of survival. Off-market vendors who do not have long-term contracts but hire trucks on demand are already feeling the pinch,” said KK Asharafll, Ernakulam Market Association.

The market receives up to 14 deliveries of supplies on Mondays involving as many trucks. He said that apart from the prices of a few select items such as beans and ginger touching ₹100 per kg and ₹120 per kg, the overall price hike is yet to take place, though it seems not far off.

Chicken stall operators are still worried that the increase in fuel prices may push up the price of chicken, which has only recently fallen after a period of supply shortages. “Prices rose to ₹ 188 per kg before supplies normalized with the onset of summer showers that eased the excessive heat affecting production. They have now fallen to ₹ 170. If fuel prices continue to rise, this may lead to a corresponding rise in operating costs, which in turn will lead to price hikes,” said OS Shajahan, Ernakulam district secretary, Kerala State Chicken Association.

The only relief remains the emergence of Chalakkuda as a major supply point for the state, which greatly reduces dependence on Tamil Nadu.

The Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES) regrets the overall price hike caused by the fuel hike.

“Prices of selected items, including plastics, have gone up by 25% to 50%. The fluctuation due to frequent hikes has made long-term supply contracts almost impossible. Forget year-long contracts, we are not even able to provide monthly supply offers,” said AR Dayanand, general secretary, Kakkanad KVVES branch.

Published – 25 May 2026 11:57 IST