Kerala State Water Transport Department to get Diesel at subsidized rates.

Published on: 02 Apr, 2013
Published under: General Kerala News, Kerala Business News

1 April 2013

The Kerala High Court on Monday directed the two public sector oil companies to sell high speed diesel to the State Water Transport Department at subsidised rates. The interim directive comes close on the heels of a similar directive for supplying subsidised diesel to KSRTC.

In its petition, the Transport Department said that it was not operating its boat service with the sole motive of making profit. It aimed to provide maximum service to the general public. The oil companies were supplying diesel at non-subsidised rate, as the department had been categorised as a bulk consumer. The average consumption of diesel a month was 1.80 lakes litres. This entailed an additional expense of more than Rs 20 lakh a month.

Indian Oil Corporation and Hindustan Petroleum Corporation contended that while the Centre and the public sector oil companies were providing a subsidy of Rs 11.20 per litre of diesel, the State Government was levying tax to the tune of almost the same amount on every litre of diesel being sold to bulk consumers.

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