KOCHI: In a major relief to KSRTC, the Kerala High Court on Wednesday directed oil marketing companies to sell high-speed diesel (HSD) to the corporation at a price on a par with the existing market rate at retail outlets. The court made it clear that the interim order is provisional and subject to the final outcome of the writ plea filed by KSRTC. “Prima facie, the price levied is highly exorbitant. If it is in pursuance of any agreement, the same is an extremely unconscionable term of bargaining,” observed the court.
Justice N Nagaresh issued the interim order on KSRTC’s petition challenging the decision of oil marketing firms to increase the price of HSD sold to the corporation, which is allegedly much higher than the market price.
Supreme Court senior advocate Dushyant Dave appearing for KSRTC argued that the action of the oil companies was unreasonable and irrational. The court issued notice to the Centre, Petroleum and Natural Gas Regulatory Board, Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd and Indian Oil Corporation.
KSRTC has to pay Rs 21 over and above the price fixed for retail consumers. Private bus operators, KSRTC’s competitors operating with the fare fixed by the government, are getting HSD at a lesser price. The firms opposed any interim order contending that the writ petition is not maintainable. Senior advocate Parag Tripathi, counsel for the firms, submitted that the issue involved in the writ plea is within the realm of the contract.
Subsidy and concession are a matter of policy and the HC should not interfere in it. The price of petroleum products depends on several factors and considerations including its dependence on international pricing. It is settled law that fixation of price is a policy consideration, and the price fixation is not the forte of the court. Hence, the scope for judicial review is limited, he argued. He said, “Prices, unfortunately, had to go up for the simple reason following the Ukraine- Russia war.”
The court said the petitioner is a bulk purchaser of HSD and requires 300 to 400-kilo litres to ply 5,481 buses every day. HSD is an essential commodity and the petitioner is a public sector transport undertaking. Initially, consumer pumps’ rate was less than the retail outlet price for HSD.
Since February 2022, oil marketing companies are levying a much higher rate. At present, the price of HSD to other consumers is about Rs 91.72 per litre, whereas the KSRTC is required to pay at the rate of about Rs 121.35. The agreement shows that the seller is bound to ensure that product supply is executed at the most competitive price applicable in the market.
CARRIER GETS G30 CRORE TO PAY SALARIES
T’Puram: The government on Wednesday sanctioned J30 crore for KSRTC to pay salaries to employees for the month of March. The decision came after two trade unions affiliated to the ruling LDF announced protests from Thursday against the delay in disbursing of salaries. KSRTC is short by J40 crore as it needs over J77 crore to pay salaries. The finance department has asked it to use its own fund to manage the payment. The government has already given KSRTC J202 crore . KSRTC has to pay salaries before the fifth of every month. Irked by the delay, the CITU-affiliated Kerala State Road Transport Employees Association (KSRTEA) and AITUC-affiliated Kerala State Road Transport Employees’ Union (KSRTEU) had announced protests from Thursday.