The fuel frenzy: rising kerosene prices in Keralam

Around 4 p.m. at the Vizhinjam fishing harbour on the outskirts of Thiruvananthapuram district in Keralam, dark clouds gather ominously over the sea. A sudden, intense downpour accompanied by lightning lashes parts of the district.

Around the harbour, fishermen linger, looking skywards and weighing their options. Some appear to be returning to shore in a hurry, seemingly heeding warnings of deteriorating weather. Others remain undecided, reluctant to lose another day’s earnings, while a few seem determined to venture out, despite the gathering storm.

They begin preparing their boats for departure, carrying cans of kerosene and petrol to refuel their engines. The decision to venture into the sea is never an easy one for traditional fishermen, whose livelihoods depend on the vagaries of weather, currents and fish availability.

But increasingly, another uncertainty has come to dictate their daily calculations.

For fishermen like Muthappan K.J. of Chowara, kerosene shortage has become an additional burden in an already precarious occupation. He says the price of kerosene has risen sharply in recent months, while declining catch and the need to travel farther into the sea have pushed up operating costs.

“Kerosene prices have climbed from around ₹103 to ₹157 a litre within six months. With the subsidised supplies available through Matsyafed outlets, the government-run cooperative, insufficient to meet our fuel needs, we are forced to procure the balance from retailers at higher rates,” he points out.

Despite the government announcing hikes in subsidies, delays in reimbursing the subsidy allocation to suppliers that could extend up to six months affect the supply chain. Under such circumstances, fishermen are increasingly forced to rely on the black market. Kerosene stocks brought in from Tamil Nadu are part of such “informal arrangements,” Muthappan says.

Johnny of Vizhinjam adds that changes in fishing patterns have led to higher fuel bills. Higher temperatures and the movement of fish into deeper waters have forced traditional boats that normally operate closer to the coast to travel farther in search of catches.

The immediate trigger for the shortage is the steady reduction in the quantity of subsidised kerosene allocated to Keralam by the Union government.

Keralam has traditionally depended on kerosene to operate outboard motors used by small fishing crafts. The subsidised fuel distributed through the public distribution system (PDS) has served as an important source of support for fishing communities, even as the Centre has sought to restrict kerosene consumption as part of its clean-energy transition.

A senior official of the Food and Civil Supplies department says the Centre progressively restricted the purpose for which the allocated kerosene can be used. Earlier, subsidised and non-subsidised supplies were available under different categories, and kerosene supplied through the Centre could also meet the requirements of the fishing sector.

Subsequently, the State was directed to use white kerosene specifically for fishing activities, leading to a separate arrangement under which Matsyafed supplied the fuel on a non-subsidised basis. A separate allocation of non-subsidised blue kerosene that could be diverted for fishing purposes was also discontinued around two years ago.

The annual allocation in this regard fell from 37,056 kilolitres (KL) in 2020-21 to 25,920 KL in 2021-22, 15,552 KL in 2022-23 and 7,776 KL in 2023-24. The allocation declined further to 3,120 KL in 2024-25 and 1,854 KL in 2025-26.

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“The Centre’s allocation is now intended primarily for distribution through ration shops. However, the State government continues to earmark a portion of available quantity for fishing activities, considering the dependence of traditional fisherfolk on kerosene,” the official explains.