In these original petitions the petitioners who are wholesale dealers in kerosene, who have got licences in that respect under the Kerala Kerosene Control Order, 1968 (shortly stated the Order) challenge the direction given by the Government by which they will have to pay what is called "Differential Cost" to the State Government in the matter of sale of kerosene. When a higher excise duty is levied the price of kerosene is refixed. At that time most of the wholesale dealers in the State will be having some stock of kerosene. Naturally they will be able to sell it at a higher price, as the refixation entails a higher price. It is this difference in price which the dealer might get due to the increase in price which is termed as 'differential cost'.

2. The petitioners purchase kerosene directly from Oil Companies and sell to the customers. The State Government fix the gross selling price of kerosene. The amount of selling price is arrived at after adding sales tax, loading, unloading, measuring, handling and shouldering charges, lorry hire, leakage, telephone charges and other incidental expenses for arranging despatch. The total price is calculated by the State Government on