Khushi Gupta
Published on: May 7, 2022 at 20:44 IST
A Division Bench of Kerala High Court allowed an Appeal filed by the State-run Oil Marketing Companies (OMCs) and set aside its earlier Order asking them to provide fuel at retail rates to the Kerala State Road Transport Corporation (KSRTC).
A Bench comprising Justice C S Dias and Justice Basant Balaji said Kerala State Road Transport Corporation, a bulk purchaser, falls within a separate class and cannot be treated at par with retail customers.
The Division Bench said “It is not the function or forte of this Court” to decide the optimal or competitive price at which diesel should be sold to the Kerala State Road Transport Corporation.
“On the contrary, petroleum products are supplied to the Petitioner at their doorsteps, with credit facilities and other benefits as envisaged in the Contract.”
“Therefore, the Petitioner, a bulk purchaser, falls within a separate class and cannot be treated at par with retail customers”, the High Court said in its Order.
The Court had, on March 22, declined to stay the Oil Marketing Companies decision to hike the price of bulk diesel purchases or restrict them from further increasing the rates, but had asked them to explain the manner in which their pricing mechanism worked.
Even the diesel supplied to private bus operators by Oil Marketing Companies was at a lesser rate than that charged from Kerala State Road Transport Corporation, the Petition has claimed.
The transport corporation has claimed, in its Plea, that it was charged Rs. 121.35 per Litre for diesel by the Oil Marketing Companies, while the other consumers of the companies were getting it for Rs. 91.72 per Litre.