Following the Madras High Court's footsteps, the Kerala High Court also directed two oil marketing companies to sell high-speed diesel at the subsidised price to the state's utility Kerala State Road Transport Corp (KSRTC).

The KSRTC had challenged the Indian Oil Corp (IOC) and the Hindustan Petroleum Corp for not providing subsidy on diesel to it. The state-owned oil marketing companies have been ordered by the Centre not to provide subsidy on the fuel to bulk customers.

The public transporter also claimed that it was incurring an additional financial burden of around Rs 18 crore per month due to the scrapping of the subsidy on the fuel.

After reading the petition filed by the KSRTC, Justice V Chitambaresh issued the interim directive asking the oil marketing companies to sell diesel at the subsidised price to the transporter.

The Kerala High Court is not the first court in the country to issue such as directive. The Madras High Court has already issued an interim directive restraining the oil marketing companies from charging higher prices on diesel sold to Tamil Nadu's transport undertakings.

The Centre had directed the oil marketing companies to reduce diesel subsidy by increasing prices in a phased manner and stop selling the fuel at subsidised rate to bulk customers.

The main objective behind the Centre's move was to arrest soaring fuel subsidy bill. In the current year's fuel subsidy bill of around Rs 96,880 crore, 60 per cent is because of diesel.