KOCHI: Expressing concern over frequent price hike of petroleum products, the Kerala High Court on Friday stated that the Centre cannot wash its hands of regarding the functioning of public sector Oil Marketing Companies. The court also directed the Indian Oil Corporation and Reliance Industries to produce the balancesheet of the companies on or before December 6. A Division Bench comprising Acting Chief Justice C N Ramachandran Nair and Justice P S Gopinathan made the observation on a petition filed by former MP P C Thomas challenging the latest petroleum price hike. “Poor people are suffering due to consecutive price hike, while rich people who use premium cars don’t care about the hike. OMCs have been trying to reduce co nsumer resistance by slowly increasing the price. “Mismanagement and corruption contribute to price hike. Reaction is restricted to political parties. There is no agitation from public against the price hike. Some political parties are protesting only for political gains,” the Bench observed. The court further stated that it is impossible to stay the price hike becauseprice fixing is a policy matter.“We share our sympathy with the people, the attitude of the oil companies is like slicing the throat of consumers using a thread. They are making a massive cut without giving pain. People are forced to get adjusted to the frequent price hike. Two-wheeler riders and small car owners are the most affected. People are at the mercy of oil companies,” the Bench further observed.P C Thomas submitted that the selling price of petroleum products is being fixed on the basis of Import Parity Price (IPP) based on the Kirit S Parikh committee report. After implementing IPP, the Central Government stated that OMCs are suffering a loss of `1,30,000 crore. Thomas further stated that it is an artificial loss based on irrational and illogical approach of the government and added that the court should examine the balancesheet of the OMCs for getting a clear picture. The court issued notice to the Central Government and directed to file a counter affidavit in connection with the petroleum price hike. The court also observed that OMCs are spending money for massive advertisements. A competition among the companies has been still continuing. “Why can’t the foreign companies and more private companies be given the opportunity to sell petroleum products in the country,” the court asked.
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