KOCHI: The Finance Ministry has slashed the economic assistance given to KSRTC from Rs 50 crore to Rs 30 crore, following the diesel price hike by oil companies. Earlier, Rs 50 crore was provided monthly. The finance ministry has now decided to reduce it to Rs 50 crore.

The aid reduction comes in as double blow for the KSRTC amid the rising oil prices, salary reforms liabilities and loan repayments.

The diesel price for KSRTC has been hiked by Rs 21 per litre after listing it among large consumers. Transport Minister Antony Raju has directed to approach the high court on Thursday itself, against the action of the oil companies.

The diesel price was hiked by Rs 27.88 in two phases. It has been decided to depend on private pumps in order to overcome the crisis caused by an additional monthly expense of Rs 25 crore. However, it is not a permanent solution.