Kolkata's Kerosene Crisis: Grey Market Thrives Amid Supply Constraints
Kolkata: Following coal, kerosene continues to be one of the most widely utilized traditional fuels for households across eastern India, especially in the wake of the fuel crisis triggered by the ongoing West Asia conflict. However, escalating prices and significant supply limitations have propelled kerosene into a flourishing grey market in Kolkata, sparking serious concerns about accessibility for economically disadvantaged households.
Traditional Uses and Distribution Channels
Traditionally, kerosene serves as a crucial domestic fuel for cooking, particularly in households that lack access to Liquefied Petroleum Gas (LPG), according to an official from an Oil Marketing Company (OMC). Beyond household applications, kerosene plays a pivotal role in agriculture and pest control, as it is integral to the manufacturing of insecticides, herbicides, and fungicides.
Kerosene is primarily distributed through ration shops under the Public Distribution System (PDS). Nevertheless, officials indicate that allocations and demand patterns are undergoing notable changes.
Significant Allocation Increase and Market Realities
The quarterly allocation for West Bengal was previously set at 410 kilolitres (KL). On Friday, OMCs substantially increased this to 4,100 KL for the quarter. Since the current quarter concludes on March 31, the state will receive this allotment for approximately 17 days, meaning the effective increase is actually much higher than tenfold, the official explained.
Despite this enhanced allocation, market sources report that kerosene continues to be sold in the grey market at elevated prices. While the fuel remains cheaper than commercial alternatives, price hikes combined with restricted availability at ration shops have incentivized illegal resale in the open market, stated a grey market operator.
Impact on Local Communities
In numerous neighborhoods across Kolkata, kerosene is allegedly being sold at prices significantly above the official rate. This situation exacerbates the challenges faced by poor households, who rely heavily on this affordable fuel source for daily cooking and other essential needs.
The thriving grey market not only undermines the PDS but also highlights broader issues of fuel security and economic disparity in the region. As supply constraints persist, stakeholders are calling for more robust measures to ensure equitable distribution and curb illegal activities.
