The Madras High Court Thursday restrained the Centre from charging higher price for diesel from transport corporations in Tamil Nadu.
The order came on the state governments challenge to the Petroleum Ministrys decision to charge bulk consumers more as per its new dual pricing policy. In its plea,the state argued that its transport corporations were not profit-making ventures but an essential service used by more than 2 crore middle class and poor people every day.
Before January 18,they were supplied diesel at a rupee less than what was charged from retail customers but are now being told to pay about Rs 11 more than retailers on the incorrect and imaginary premise that they could afford to bear the burden of market price or that they could pass the additional burden on to end customers,the petition said. But the transport corporations cannot pass on the additional burden to commuters.