Terming the High Court order asking the State-run oil marketing companies (OMCs) to provide diesel to the Kerala State Road Transport Corporation (KSRTC) buses at retail rates and not the higher rate being charged from bulk purchasers as a historic decision, Transport Minister Antony Raju on Wednesday said the court order was major relief not only to the KSRTC but to all the companies in India that make bulk purchases.
Stating that the ruling calls into question the companies’ right to set their own fuel prices, the Minister said the OMCs had adopted a bizarre approach of charging higher prices for bulk purchases even as wholesale prices of commodities were lower than the retail prices.
Terming that the fuel companies’ position was against the constitutional principle of equality, the Minister said the court observations would have far-reaching implications on fuel pricing. With the court order, KSRTC could now avoid the additional liability of ₹12-15 crore per month, said Mr Raju.
