Thiruvananthapuram: The first adjournment motion notice submitted by the Opposition in the 16th Kerala Legislative Assembly was rejected by the Speaker following Chief Minister VD Satheesan’s explanation. The Opposition had demanded that the House be adjourned to discuss rising prices.

The Chief Minister acknowledged that the Opposition’s allegation of price rise in the state was partly correct and said the government would take a decision on the matter shortly.

According to him, the ongoing conflict in West Asia is a major reason for the current inflation. He also accused the previous government of failing miserably in market intervention. The Left government, he said, left behind dues of ₹3,000 crore to the Civil Supplies Corporation. The government is now taking strong measures to control prices, and a white paper would be released to answer allegations regarding the state's financial condition.

The adjournment motion was moved by KN Balagopal, who argued that delaying action until prices fall was impractical. He asked the Chief Minister to clarify whether he still stood by the position he had taken as Opposition leader when fuel prices rose during the previous government's tenure.

What Balagopal Said

Balagopal pointed out that prices of various commodities have risen sharply since March 31. The price of commercial LPG cylinders, he said, had jumped from ₹1,883 to ₹3,133, putting many hotels under severe strain. Petrol and diesel prices have also increased, while the construction sector is facing similar difficulties.

He recalled that when fuel prices rose under the previous government, VD Satheesan, then the Leader of the Opposition, had led protests demanding a reduction in state taxes. Now that he is Chief Minister, Balagopal said, reducing the additional tax revenue generated from higher fuel prices would be a gesture of fairness towards the public.

He added that the LDF’s position on fuel tax relief had remained unchanged whether in government or in opposition, noting that tax concessions were granted in 2018 and 2022.

Balagopal also remarked that discussing the issue in the Assembly would not politically embarrass the government. Instead, it would give the Chief Minister an opportunity to demonstrate that he stands by the commitments he made while in opposition.

Chief Minister’s Reply

Responding to the criticism, Chief Minister VD Satheesan said that between 2016 and January 31, 2025, the state earned an additional ₹3,100 crore due to increases in petrol and diesel prices, yet the previous government had not reduced taxes even by a rupee.

He recalled that when suggestions were made to use part of the additional revenue to assist taxi and autorickshaw drivers, then Finance Minister Thomas Isaac had rejected the idea, saying the government would not engage in such “foolishness.” Satheesan questioned why the same people were now advising the present government to reduce taxes.

The Chief Minister further stated that the previous government still owes ₹2,893 crore to the Civil Supplies Corporation, the agency responsible for market intervention and price control in Kerala. He argued that only after settling those dues would the corporation be able to effectively intervene in the market and curb the current surge in prices.