Kerala HC refuses to stay fuel price hike by state's oil marketing companies
India Today
The Kerala High Court has refused to stay fuel price hike by the state's oil companies. The court said it is a policy decision and it cannot intervene in the issue.
The Kerala High Court on Tuesday refused to stay the state-owned Oil Marketing Companies' (OMCs) decision to increase price on bulk diesel purchases. The court also declined to restrict the companies from further increasing the rates.
However, it has sought an explanation from the companies about their pricing mechanism. The court issued the order based on a plea by Kerala State Road Transport Corporation (KSRTC) challenging the decision to hike price by the OMCs.
The court also told companies like Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd that the OMCs should have given a concession to public services like KSRTC.
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Justice Nagaresh said that the OMCs are aware of the way KSRTC is functioning and should have given adequate aid when the price was hiked.
While the court refused to pass an interim order saying that there is no scope for it, it also said that further decisions can be taken after the response from OMCs is received.
The court further observed that KSRTC chose to be considered as a 'bulk purchaser' and had been using the option to purchase diesel in bulk at discounted prices, as it was providing a public service.
