SC upholds Centre's policy on dual pricing of diesel

SC upholds Centre's policy on dual pricing of diesel

The Supreme Court on Monday upheld the Centre’s policy of dual pricing on diesel under which no subsidised fuel would be available to bulk buyers like Railways and state transport corporations.

A bench of justices presided over by Justice R M Lodha noted that the economy was in a bad shape and a pragmatic approach was required on subsidies.

The court said stereotype thinking on subsidy has to be changed as economy, which has been hit by falling value of Rupee, has to survive and Public Transport Corporations have to find out means to sustain themselves without getting subsidy.

“We have to change mindset. You (transport corporations) just cannot sustain on subsidy. You have to find ways and means to sustain. You have to charge from public.

We cannot ignore the fact that oil is imported. Stereotype thinking has to be changed. How can you continue to survive on subsidy,” the bench, also comprising Justice Madan B Lokur, said. The court set aside the stay orders on the implementation of the Centre’s policy passed by the Madras and Kerala high courts.

The bench took into consideration that 83 percent of the oil is being imported and any subsidy on its price would hit the government oil companies. It also suggested that transport corporations should devise means to cut the cost of operations.