The Kerala State Road Transport Corporation on Tuesday knocked the doors of the Supreme Court, seeking directions to the Centre to formulate an independent regulatory authority for controlling of fuel price.
The KSRTC filed a petition against the decision of Oil Manufacturing Companies (OMCs) to increase the diesel price for bulk purchasers.
The price of one litre of diesel given to the loss-making KSRTC was now Rs 6.46 more than the price given to the public (Rs 91.42) in the state
Kerala Transport Minister Antony Raju said that KSRTC will buy fuel from private pumps, instead of buying it in bulk. He said that normally, bulk buyers get a discount and added that OMCs do not even deduct the agency commission, they normally pay to private outlets, when selling in bulk to the transport utility.
The increase in prices will result in an additional liability of Rs 19 lakh per day for the public transport utility.
“The government will examine all aspects in the light of the order and hold discussions with oil companies to sort out the issue and if necessary, take it up with the Centre. Kerala State Road Transport Corporation cannot absorb the new burden and a solution would be found to overcome the situation, he added.