In Brief
The Supreme Court dismissed writ petitions challenging the Government of India's policy of withdrawing diesel subsidy for bulk consumers, including State Road Transport Corporations, effective January 2013. The petitioners argued the dual pricing violated Articles 12 and 14 of the Constitution. The Court held that subsidy is a fiscal privilege, not a right, and can be withdrawn at government discretion. The policy, adopted after over a decade of deliberations to address massive under-recoveries by Oil Marketing Companies (₹1,68,948 crores by end 2012), was neither arbitrary nor discriminatory. Public service obligations do not entitle entities to claim subsidy as of right. Policy decisions on fiscal matters are not judicially reviewable.
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