Kerosene price rises as grey markets flourish across state | Kolkata News – The Times of India

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Kerosene price rises as grey markets flourish across state

Kolkata: After coal, kerosene remains one of the most widely used traditional fuels for households across eastern India, following the fuel crisis triggered by the West Asia conflict.

However, rising prices and supply constraints pushed kerosene into a thriving grey market in Kolkata, raising concerns about access for poor households. Traditionally, kerosene is used as a domestic fuel used for cooking, particularly in households without access to LPG, said an OMC official. Apart from household use, kerosene also plays an important role in agriculture and pest control, as it is used in the manufacture of insecticides, herbicides, and fungicides.

Kerosene is primarily distributed through ration shops under the public distribution system (PDS).

However, officials say that allocations and demand patterns are changing.“The quarterly allocation for West Bengal was earlier 410 kilolitres (KL). On Friday, OMCs increased it to 4,100 KL for the quarter. Since the current quarter ends on March 31, the state will receive this allotment for about 17 days, which means the effective increase is actually much higher than 10 times,” the official said.

Despite the increased allocation, market sources say kerosene continues to be sold in the grey market at higher prices. “While the fuel is still cheaper than commercial alternatives, price increases combined with limited availability at ration shops encouraged illegal resale in the open market,” said a grey market operator.In several neighbourhoods of Kolkata, kerosene is reportedly being sold at significantly higher prices than the official rate.

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