Kochi, Apr 13 (PTI) The Kerala High Court on Wednesday said the price of diesel charged by the State-run oil marketing companies (OMCs) from the Kerala State Road Transport Corporation (KSRTC) was prima facie "highly exorbitant" and asked them to provide the fuel at retail rates to the latter. Justice N Nagaresh, in his interim order, also said if the price levied was pursuant to any agreement, the same was prima facie "an extremely unconscionable term of bargain". "Whatever be the mechanism adopted by respondents 2 to 4 (OMCs) in fixing the rates for bulk supply to consumer pumps, prima facie the price levied is highly exorbitant. If it is in pursuance of any agreement, the same prima facie is an extremely unconscionable term of bargain. "In the facts and circumstances of the case, there will be an interim order directing respondents 2 to 4 to levy the price for high speed diesel from the petitioner (KSRTC) at par with the existing market rate available for the retail outlets. This interim order is provisional and will be subject to the outcome of the writ petition," the court said. The interim order came on a plea by KSRTC challenging the OMCs decision to charge a higher rate from bulk purchasers of diesel as compared to retail prices of the fuel. The court had, on March 22, declined to stay the OMCs decision to hike the price of bulk diesel purchases or restrict them from further increasing the rates, but had asked them to explain the manner in which their pricing mechanism worked. On Wednesday, the oil companies -- represented by senior advocate Parag Tripathi -- told the court that it was a commercial dispute which was governed by a contract which specifically provides that any dispute has to be resolved by negotiation or arbitration. Therefore, the writ petition moved by KSRTC was not maintainable, Tripathi told the court. He further contended before the court that the issue of pricing, which is being challenged via the instant plea, was explicitly contemplated in the agreement and falls within the ambit of dispute as described in the contract. The oil companies further contended that "it is settled law that fixation of price is a policy consideration and that price fixation is not the forte of the court and the scope of judicial review is extremely limited". They also contended that KSRTC wanted the court to intervene in a purely contractual field resulting in price fixation. "The price of petroleum products depends on several factors and considerations including its inevitable dependence on international pricing. There is always a possibility of difference in case of consumer pumps like the petitioner and retail outlets from where citizens get their petroleum products," the OMCs told the court. KSRTC, represented by senior advocate Dushyant Dave and advocate Deepu Thankan, opposed the OMCs contentions and said that the oil companies ought to have provided fuel to the corporation at competitive prices, instead of arbitrarily increasing the rates of bulk purchasers. The court, on the previous date of hearing, had said that the OMCs ought to have given a differential treatment to public service utilities like KSRTC. Alleging "hostile discrimination" against it by the OMCs, KSRTC has urged the high court to either stay the price hike or to restrict any further increase in the rate for bulk purchasers. It has contended in its plea that it was already running under heavy losses and without any interim relief, it would be forced to shut down. KSRTC, in its plea, has contended that it has to pay more than Rs 27 extra per litre for diesel to the state-run oil manufacturing companies (OMCs) as compared to the rate of the fuel at private retail outlets. Even the diesel supplied to private bus operators by OMCs was at a lesser rate than that charged from KSRTC, the petition has claimed. The transport corporation has claimed, in its plea, that it was charged Rs 121.35 per litre for diesel by the OMCs, while the other consumers of the companies were getting it for Rs 91.72 per litre. "There is no reason forthcoming for supplying the diesel to the KSRTC alone at a higher price. It cannot be said that it is because of the bulk use by the KSRTC, as there is no shortage of petroleum products in the country. There is no valid explanation for treating KSRTC as a separate class," the plea has said. Presently, KSRTC operates 5,481 buses on 3,525 routes every day with a ridership of around 18.4 lakh per day, it said and added that it presently requires around 300-400 kilolitres of diesel per day. This is lesser than the pre-COVID-19 situation, when the transport corporation was operating 6,241 buses on 6,389 routes every day with an average ridership of 35 lakh per day, the petition said It has contended that permitting OMCs to charge bulk buyers more than retail purchasers would push the already ailing corporation into "the deep abyss of debt" and would deprive the general public of its services. The OMCs decision to increase price of bulk purchase of diesel will result in an approximate accumulated loss of around Rs 83 lakh per day for the KSRTC, the petition has claimed. "The increase in the price of diesel to the KSRTC alone will force them to take a decision to cancel the schedules to manage the cost of services. The increase in price of diesel will directly affect the KSRTC passengers as the KSRTC will have to proportionally increase the tariff rates," the plea further contended. KSRTC, in its plea, urged the court to direct the OMCs to sell diesel to it at the market rates prevailing at retail outlets and to declare the charging of a higher price from the corporation as "discriminatory, arbitrary, unreasonable and violative of Article 14 of the Constitution". PTI HMP NVG NVG