4 days ago
Kerala's kerosene distribution plans remain a non-starter
Despite receiving a Central allocation of 56.76 lakh litres of kerosene for distribution between April and June, the Kerala government is yet to fulfil its promise of supplying the fuel to all ration card holders.
The impasse which stems from a deadlock over the proposed dealers' commission threatens to derail the State's first kerosene allotment in nearly two years.
The Food and Civil Supplies department had planned to supply one litre of kerosene each to Antyodaya Anna Yojana (AAY) card holders and half a litre each to Priority Households (PHH) and other ration card holders, at a fixed price of ₹63 a litre. Kerosene was last distributed through ration shops in the State at ₹83 a litre.
Following discussions with representatives of kerosene dealers, the department had submitted a proposal that included a commission of ₹5 and transportation cost of ₹2 a litre. However, this was rejected by the Chief Minister's Office and the Finance department.
Official sources maintained that the proposed plan would not have burdened the State exchequer as no subsidy was provided for kerosene sales. On the contrary, it would have generated ₹1.35 a litre in tax revenue.
Anticipating the rollout, many dealers had also begun preparations by investing in tanker trucks and renewing expired distribution licences to lift the allocated stock from oil marketing companies.
Despite the dwindling time-frame for distribution, Food and Civil Supplies Minister G.R. Anil remains hopeful. 'We are committed to lifting the full quota and completing distribution before the month ends. The allocation will not be lapsed at any cost,' he said.
The Minister pointed out that the initial proposal was returned by the Chief Minister with instructions to reduce the dealer commission to ₹3 a litre. The revised proposal will be discussed with wholesale dealers to reach a resolution.
The failure to find a solution within the month-end could result in the State losing the entire kerosene quota, potentially rendering the government's persistent efforts to achieve the allocation fruitless.
