Poor man's fuel kerosene sees sharp rise in price even as usage dips

Domestic consumption has been coming down in recent years

The price of the poor man’s fuel kerosene has more than doubled in major cities even as its usage has been declining.

Kerosene costs 104-112 per cent more in Kolkata and Mumbai as of February 2022, compared to prices in April 2020 around the beginning of the Covid-19 pandemic. The price in Chennai is up 10.3 per cent in the same period. Chennai has historically provided a higher state subsidy for the fuel.

The price rise is even higher if compared to a few years ago (see chart 1).

The impact of this is less than what it would