Thiruvananthapuram

V D Satheesan on Tuesday said the Kerala government would decide on possible relief measures to ease the burden of rising fuel and LPG prices after evaluating their economic and social impact.

Replying to an adjournment motion moved by the opposition Communist Party of India (Marxist)-led LDF in the Assembly, Satheesan acknowledged that repeated increases in petrol, diesel and LPG prices were affecting the public.

"The major issue before the state government is the recurring increase in fuel prices. There have been four hikes since May 15 alone, and indications from Delhi suggest further increases may follow. There is uncertainty over the situation," he said.

The chief minister said the government was closely monitoring the impact of the price rise on households and the broader economy before taking a decision.

"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 headed by Oommen Chandy had foregone additional taxes on petrol and diesel, resulting in a revenue sacrifice of around Rs 619 crore. He contrasted this with the previous LDF government, alleging it collected substantial additional revenue from fuel taxes without offering relief to consumers.

He also criticised the previous administration for imposing a fuel cess to fund social security pensions when fuel prices were already high, calling the move "a wrong decision."

During the debate, senior CPI(M) leader and former finance minister K N Balagopal urged the government to waive part of the additional revenue earned through fuel taxes and provide immediate relief. He argued that rising petrol, diesel and LPG prices had increased the cost of living and affected sectors such as the hospitality industry.

Balagopal also called on the state government to press the Centre over repeated fuel price increases and suggested measures such as LPG subsidies and tax concessions.

Leader of Opposition Pinarayi Vijayan criticised the government's stance and reiterated the demand that it forgo additional tax revenue generated by fuel price hikes to reduce the burden on citizens.

Vijayan accused Satheesan of changing his position after becoming chief minister, claiming that he had earlier criticised state governments whenever fuel prices were increased by the Centre.

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After Speaker Thiruvanchoor Radhakrishnan disallowed the adjournment motion, citing the chief minister's response, LDF members staged a walkout from the Assembly.