KSRTC takes oil companies to court over diesel price hike

The KSRTC on Friday moved the High Court against oil marketing companies for increasing fuel prices for bulk purchasers.
 A KSRTC low floor bus (File photo | Express)
A KSRTC low floor bus (File photo | Express)

THIRUVANANTHAPURAM: The KSRTC on Friday moved the High Court against oil marketing companies for increasing fuel prices for bulk purchasers. The state-run carrier sought a directive to sell High-Speed Diesel (HSD) to it at the price charged at the state’s retail outlets. The HC has sought the views of public sector oil marketing companies on the plea.

In its plea, KSRTC said increasing the price of diesel for the transport corporation, which operates services even in less profitable routes for public convenience, was unjust. KSRTC is the lone bulk purchaser of fuel in the state and uses 270 to 300 kilolitres of diesel a day to run 12 lakh km of services. Oil firms have increased the price of diesel supplied to it by Rs 38.61 since December 2021. The latest hike, that of Rs 27.88 per litre, was announced on March 16.

So, while private vehicles get diesel for Rs 93.47 per litre, the KSRTC has to shell out Rs 121.36 for the same quantity. This would force the cash-strapped transport corporation to shell out an additional Rs 75 lakh to Rs 83 lakh per day on diesel, creating an additional burden of Rs 22 crore to Rs 25 crore a month on it. KSRTC said the hike would force it to cancel schedules and increase the fare to manage the cost of services.

‘Oil Cos’ decision discriminatory’
“The decision by oil marketing companies to increase the price of diesel sold in bulk only to KSRTC is discriminatory and in violation of Article 14 of the Constitution,” it said in the petition, while also seeking a directive to set up a regulatory board as mandated by the Petroleum and Natural Gas Regulatory Board Act, 2006, to monitor fuel prices and protect consumers. Though KSRTC had approached the Supreme Court against the hike in February, the apex court had asked it to move the HC.

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com