Thiruvananthapuram: The Civil Supplies Department’s decision to revise the price of ration-distributed kerosene to ₹60 per litre has triggered internal disagreement and resistance from kerosene dealers, jeopardising the entire distribution process.

Though the Civil Supplies Minister offered assurances following internal discussions, both the Chief Minister’s Office and the Finance Minister have rejected the proposal. This has led dealers to withhold procurement from oil marketing companies, freezing the supply chain. With dealers refusing to lift stocks, the recent order that allocated one litre for yellow cardholders and half a litre for others has effectively been nullified, making it increasingly likely that PDS kerosene distribution will remain suspended for a second consecutive year.

Kerala risks losing its first-quarter allotment of 56.76 lakh litres from the Centre if the stock is not lifted by June 30. Last year, the state had already forfeited its quota due to similar distribution issues. The current allocation marks a significant jump from the previous 7.8 lakh litres, highlighting the urgency to resolve the deadlock.

The department had acted on recommendations from a bureaucratic commission tasked with addressing the challenges in distribution. The proposed plan included a 35 per cent hike in transportation costs, a ₹1 per litre special charge and increased dealer commissions, pushing the price to ₹68 per litre. Officials maintain this would not have increased the state's financial burden and point out that kerosene has previously been sold at up to ₹90 per litre in Kerala.

Trusting the minister’s earlier promise, dealers had invested in tanker trucks and applied to renew licenses that lapsed 18 months ago. Since kerosene distributed through PDS (ration shops) is dyed blue for identification, dealers had arranged dedicated vehicles to transport it.