HC division bench quashes interim order allowing KSRTC to buy diesel at retail price

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Kochi: In a major setback for KSRTC, the division bench of the Kerala High Court quashed the interim order issued on a petition filed by KSRTC challenging the decision of oil companies to increase diesel prices. As per the interim order, KSRTC was allowed to temporarily purchase diesel from oil companies at a retail market price.

The order issued by the single bench was dismissed by the HC division bench based on an appeal submitted by the oil companies. The appeal filed by Indian Oil Corporation and BPCL claims that KSRTC's petition will not legally stand.

The oil companies argued that unlike customers in the retail market, the KSRTC buys diesel in bulk. Therefore, it is not possible to charge them as per the retail rate.

Earlier, the fuel companies had decided to charge higher rates to KSRTC as a bulk purchaser. KSRTC had approached the High Court after the companies supplied diesel at an extra rate of Rs 20 per litre.

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