In order to resolve the dilemma caused by supreme court's verdict insisting to stop diesel subsidy by oil companies, the KSRTC cut down 2,-225 schedules from Tuesday. As part of this, services which generate revenue below 7000 rupees per day will be stopped. However, it will not affect the  Jantam services of KSRTC.  

On Monday, the apex court ruled that no subsidy be provided to the Kerala State Road Transport Corporation (KSRTC) from Monday onwards.

In March 2013, the Oommen Chandy government had approached the High Court seeking a directive to all oil companies in the state that they should supply diesel to the KSRTC at subsidised rates taking into account that it is a public utility.

The court had then ruled in favour of the state government and oil companies continued to supply fuel at subsidised rates, but approached the apex court against the ruling.

However, in its judgment, the apex court pointed out that there is no need for providing fuel at subsidised rates to the KSRTC and attributed the transport undertaking's losses to
mismanagement.

It asked what was the need for providing free travel to law-makers and journalists by the state owned transport corporation.

It also pointed out that the KSRTC should look into ways of increasing its revenues by hiking the fares if necessary as one cannot turn a blind eye to the huge losses incurred by the oil companies on account of importing fuel to meet the country's needs.

The ruling came as a shock to the corporation as its gross operating loss has crossed Rs. 350 crore in the current fiscal. At times, the state government pumps in money to keep the corporation afloat.

At the same time, Chief Minister Oommen Chandy said that he will hold a discussion with pertoleum companies on Wednesday to take an amicable decision.

“All remedies will be taken in a way not to incur more debt to KSRTC. The government will think of going for an appeal against Supreme Court verdict after consulting with experts,”he added.