Transport corporations to purchase diesel in retail

Last Updated: Sat, Feb 16, 2013 04:16 hrs

West Bengal government has asked all the transport corporations to buy diesel from retail platform to avoid higher prices in bulk market.

"We belong to the category of bulk consumers.With the dual pricing, we will have to pay Rs 11.20 more per litre of diesel here. It is impossible to run buses spending that much on fuel. I have asked to transport corporations to take diesel from petrol pumps," West Bengal transport minister Madan Mitra said.

According to Mitra, all five state government-run transport corporations have already partially started buying diesel from retail platform.

State-run transport corporations in West Bengal- Calcutta State Transport Corporation, North Bengal State Transport Corporation, South Bengal State Transport Corporation and West Bengal Surface Transport Corporations, fall into the category of bulk consumers unlike the private transporters in the state. "West Bengal government already provides Rs 600 crore annual subsidy to transport sector, we are not in position to take an additional burden," Mitra said.

The Centre, last month, allowed state fuel retailers to increase prices periodically in small doses starting with the increase in the pump price of diesel by 45 paise a litre. However, bulk consumers buying from installations of OMCs, the increase was Rs 9.25 a litre plus taxes. In Kolkata for bulk consumers the hike has been Rs 11.20 effective from January 17.

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