Diesel price: HC gives temporary relief to TN transport corps

Madras High Court today restrained till April 12 the oil marketing companies from charging bulk diesel price for the fuel sold to Tamil Nadu State transport undertakings.
The interim injunction was granted by Justice S Rajeswaran while hearing a petition by Chairman of state transport undertakings challenging a central government order allowing oil companies to charge market price for bulk users of high speed diesel.
The Judge also ordered issue of notice to the Petroleum Ministry and Managing Directors of Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited, returnable by April 12.
Contending that the Centre's January 17 decision of partial deregulation of diesel price was "arbitrary, inflationary, discriminatory and anti poor," the petition prayed for declaring the price hike as unjust and unconstitutional.

As an interim prayer, the petition prayed for restraining authorities from charging transport corporations run by the state government non-subsidised price.
The petition submitted that of the 20,500 bus services run by the state government through eight transport corporations, as many as 18,361 were loss making.

The principal reason for the loss was mainly due to the provision for transport facilities at affordable rates despite rise in price of diesel, the petition said adding nearly 35 per cent of the total loss incurred by the state transport undertakings was due to increase in fuel price.
It said that prior to the partial deregulation of diesel price in January, the transport corporations were purchasing diesel at Rs 49.72 per litre.

But after the dual pricing system under which bulk consumers such as the state transport undertakings and the Railways would no longer be eligible for subsidy, the price of diesel was hiked by Rs 11.81 per litre for them.