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Apr 22, 2013 at 12:14pm IST

Madras HC sets aside interim stay, Central govt's bulk diesel pricing applicable in TN

Chennai: The Madras High Court on Monday set aside a single Judge's recent order restraining oil marketing companies from charging higher price for diesel sold to state transport corporations in Tamil Nadu.

Earlier, the High Court had restrained the Centre from charging higher diesel price from transport corporations in Tamil Nadu.

The petition filed by the Petroleum Ministry had contended the single Judge ought not to have entertained the petition by the Chairman of state transport undertakings challenging the Centre's decision which had a country-wide ramification and should have dismissed it in limine.

Central government's bulk diesel pricing applicable in TN

Earlier, the High Court had restrained the Centre from charging higher diesel price from transport corporations in Tamil Nadu.

Earlier, the case was brought forward by the state government which challenged the Petroleum Ministry's decision to charge bulk consumers more as per its new dual pricing policy. In its plea, the state had argued that its transport corporations were loss making prepositions but a very important and essential service used by masses.

Before January 18, Corporations were supplied diesel at a rate lesser than what was being charged from retail customers but are now being told to pay about Rs 11 more than retailers on the premise that they could afford to bear the burden of market price, the petition said. But the transport corporations cannot pass on the additional burden to commuters, it stated further.

Meanwhile, state transport undertakings along with defence and railways form 60 per cent of bulk customers and power, cement and chemical sectors constitute the remaining 40 per cent.

With Additional Inputs From Moneycontrol

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