Even as diesel shortage hit the ordinary services of the Kerala State Road Transport Corporation (KSRTC), the State government on Saturday intervened, sanctioning financial assistance of ₹22 crore to solve the crisis.
The public sector oil marketing companies are maintaining that they will not supply the fuel to the Corporation without clearing the arrears of ₹13 crore.
The decision to foot the pending salary bills of employees using the fund set aside for the fuel purchase has worsened the situation in the public utility. Following this, up to 50% of ordinary bus services were cut short in various depots in 10 districts, hitting the passengers adversely. The KSRTC has decided to operate only 25% of its ordinary services on Saturday and no service on Sunday following the shortage of diesel.