Thiruvananthapuram, Dec 12 (IANS): With the Kerala government's dues to various petroleum dealers mounting as its financial position in dire straits, the dealers have decided that from January 1, no more fuel will be given to state government vehicles on credit.

Thiruvananthapuram, Dec 12 (IANS) With the Kerala government's dues to various petroleum dealers mounting as its financial position in dire straits, the dealers have decided that from January 1, no more fuel will be given to state government vehicles on credit.

The decision was taken at a meeting of the All Kerala Federation of Petroleum Traders as its members who have supplied fuel to state government vehicles on credit are finding it tough to move forward as the last payment that came from the state government was in June.

According to the procedures, all state government vehicles, including of state-run public sector organisations fill up fuel from the various retail private outlets on credit and the payment is made later.

With the state’s financial position appallingly poor, numerous retail outlets have to receive from the state government ranging from Rs 5 to Rs 25 lakh and with the dealers getting no credit from the three public sector oil companies, the traders body comprising of around 2,000 members decided that they will not be giving any more fuel, till their outstanding dues are cleared.