Kerala vehicles might head towards petrol pumps in Karnataka and Tamil Nadu from Saturday as petrol and diesel will become costlier in Kerala as the state budget proposal to impose a cess of Rs. 2 per litre is coming into effect.
Many petrol pumps close to Karnataka and Tamil Nadu borders in Kerala, especially those in places like Kasargod, are worried about a possible fall in sales.
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Compared to Karnataka, diesel will be costlier by over Rs. 10 per litre and petrol Rs. 8 per litre in Kerala, say petroleum dealers.
Kasargod, which has around 75 pumps would be the worst affected. Already two pumps in the district, including the one close to the Thalapady border, stopped sales due to the loss, said All Kerala Federation of Petroleum Dealers state joint secretary Moosa B Cherkala.
He said that the Kerala government might not get much additional revenue by imposing the cess on fuel as there would be a considerable fall in sales. All inter-state vehicles, including the state-run Kerala State Road Transport Corporation, were already buying fuel from other states. Moreover, from Thiruvananthapuram in the south to Kasargod in the north, many parts of Kerala are close to either Tamil Nadu or Karnataka.
"The fresh cess is ringing the death knell for hundreds of petrol pumps in Kerala that are close to Karnataka or Tamil Nadu borders," he said.
Mahe, part of Puducherry that falls near Kannur, was already witnessing brisk fuel sale owing to the price difference of around Rs. 10 per litre. There are around 15 pumps in the region. Now more people from Kannur and Northern parts of Kozhikode may buy fuel from Mahe, the dealers in Kerala say.
Apart from petrol and diesel, liquor price in Kerala will also increase by Rs. 20 to Rs. 40 per bottle from Saturday. Hence the excise authorities are enhancing vigil at the border roads from Karnataka and Tamil Nadu to avert the high chances of smuggling.