In an interim order,the Kerala High Court on Thursday directed oil companies to supply diesel at subsidised price to Kerala State Transport Corporation,which has been buying fuel at higher prices since January.
The corporation had petitioned the High Court,taking a cue from Tamil Nadu,which had last week obtained a court directive to get diesel at market price.
Advocate-General K P Dandapani told the court that the government would meet the loss that the oil firms would incur from subsidised sale of diesel,subject to the courts final decision. Subsequently,the HC asked the oil firms to supply diesel at subsidised rate.