Admitting the petition which termed as 'notional' the loss of oil marketing companies, a bench comprising Chief Justice Majula Chellur and Justice A M Shafique issued notice to the Centre and others.
The petitioner also sought a direction to the Centre to invoke powers under the Essential Commodities Act, 1955, to control the price of petroleum products and make it available at fair price.
He sought a direction to the oil companies and other respondents not to calculate the loss of companies on the basis of under recovery.
The huge burden on the people by the "wrong calculation" of oil companies ended up in proportional heavy taxation, Thomas contended.
The petitioner submitted that the loss of oil marketing companies was "notional" and "imaginary". It was difficult to accept the false plea of companies that they were incurring huge loss by way of under recovery.
Union Government, Indian Oil Corporation, Bharat Petroluem Corporation Limited and Reliance Industries ltd are cited as respondents.
Centre on September 13 last hiked the diesel price by a Rs five per litre.
