The Oil Ministry is likely to take a call on charging higher price for diesel from transport corporations in Tamil Nadu after the Madras High Court Hearing today.
The Madras HC last week restrained the Centre from charging higher diesel price from transport corporations in Tamil Nadu.
The order came on the state government's challenge to the Petroleum Ministry's decision to charge bulk consumers more as per its new dual pricing policy. In its plea, the state 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. Read This: Madras HC order may not impact bulk diesel buyers: Moily
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