Keralam CM mulls reducing fuel taxes to boost consumption

Keralam Chief Minister V D Satheesan inaugurates the Ignite Kerala Convention organised by the All Kerala Federation of Petroleum Traders (AKFPT). M P Ashokan, K S Komu, Mythanam Vijayan, Moosa B Cherkala, Sunil Abraham, M S Prasad, Hibi Eden M P, Uma Thomas MLA, Radhakrishna Menon and Mayor V K Minimol are also seen.

Keralam Chief Minister V D Satheesan has said that the government is examining the possibility of reducing fuel taxes if such a move would help revive consumption and increase revenue.

He said the earlier increase in fuel cess had resulted in a decline in fuel consumption, ultimately causing a loss of revenue to the government. The government was willing to consider a tax reduction if it helped stimulate consumption.

Satheesan recalled that he had cautioned the previous government against increasing the fuel cess, but his warning had gone unheeded.

The Chief Minister was speaking after inaugurating the Ignite Kerala Convention, organised by the All Kerala Federation of Petroleum Traders (AKFPT), here on Saturday.

He said the government was examining the proposal in detail. Entrepreneurs and industrialists were not enemies of the government, he said, adding that the present government was committed to protecting taxpayers and extending all possible support to industry and entrepreneurship.

Stringent anti-smuggling measures

He also pointed out that large-scale diesel smuggling into the state was taking place and said the government would take stringent measures to curb the illegal trade.

The Chief Minister assured petroleum dealers that their concerns over dealer commissions would be taken up with the Union Ministries of Petroleum and Finance for an appropriate resolution.

Tomy Thomas, president of AKFPT, urged the State government to recommend to the Centre and oil marketing companies that dealer commissions be revised in line with prevailing economic conditions.

He also called for a special Petrol Pump Protection Act, on the lines of the Hospital Protection Act, to ensure the safety of petrol pump establishments and employees providing round-the-clock services. He further urged the government to withdraw additional cesses that adversely affect both dealers and consumers.

The organisation’s charter of demands was submitted to the Chief Minister by AKFPT president Tomy Thomas and general secretary Y Ashraf.

Published on October 31, 2026