Tanya Gupta
Published on: March 21, 2022 at 18:04 IST
In the Case of Kerala State Road Transport Corporation Vs. Union of India & Others, the Supreme Court grants Liberty to the State Government to approach the High Court to entertain the Plea against the Rise in Prices of Bulk Diesel sold by State-Owned Oil Marketing Companies.
Following this, with the Instant Plea, the Kerala State Road Transport Corporation approaches the High Court.
The Indian Oil Corporation Limited was asked to take Instructions on the matter by Justice N Nagaresh.
The matter will be posted before the appropriate Bench on March 22.
The Plea challenges the State-Owned Oil Marketing Companies’ (OMC) decision of Increasing the Price of High-Speed Diesel sold at a much Higher Rate than the Market Price to the Kerala State Road Transport Corporation.
The Plea highlights that around 300-400 KL of High-Speed Diesel is required by the Corporation per day for Operating daily activities.
The Petition states that the Subsidy which was given to the Corporation was withdrawn in 2013 and a Non-Subsidized Price was determined which was less than that of the Retail Pumps.
Initially, the Price Difference between the Retail and Consumer Pumps was decreasing gradually but as of March 17, 2022, the price of Bulk High-Speed Diesel went from Rs. 88 to Rs. 121.35.
The Plea stated,
“Supply of High-Speed Diesel to the KSRTC alone at a Higher Price than available in Retail Outlets for others would amount to Discrimination and thus Violative of Article 14 of the Constitution of India. The increase in the price of High-Speed Diesel to the KSRTC alone will force the, to cancel the Schedules to manage the Cost of Services.”
The Plea contended that despite the Recommendation of the Natural Gas Regulatory Board, all Petroleum Products have not come under the purview of the Petroleum and Natural Gas Regulatory Board Act, 2006.
The Petitioner relied on the Supreme Court Judgement in M/S Sitaram Sugar Co. Ltd. Vs. Union of India and submitted that the being a Petroleum Product, High-Speed Diesel comes under the scope of Essential Commodities Act, 1955, thus the High Court is well within the Power to Interfere in the Respondent’s actions.
Moreover, Under the Monopolistic and Restrictive Trade Practices Act, 1969, the Unilateral Fixation of the High-Speed Diesel Price is Violated.
On the above-mentioned Grounds, Inter alia, the Government and State-Owned Oil Marketing Companies are directed by the Court to sell High-Speed Diesel at the Rate available at the Retail Outlets in the State.
Also Read: Supreme Court Rejects KSRTC’s Plea challenging Fuel Price Hike, asks to Approach High Court