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The Court of Appeal has ruled the Consumer Affairs Authority (CAA) cannot control Shell Gs Lanka prices by categorizing LP gas as an essential item.
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The Court of Appeal has ruled the Consumer Affairs Authority (CAA) cannot control Shell Gs Lanka prices by categorizing LP gas as an essential item. The court awarded the case in Shell Gas Lanka's favor with costs after it went to court against the CAA.
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The CAA declared LP gas an essential item forcing retailers Shell and Laugfs to get its approval for any price increase.

Shell, which acquired a controlling stake in Ceylon Gas Company when it was privatized, contended that it could adjust prices according to international price movements after a monopoly it enjoyed in the local market was over.

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LP gas prices mirror crude oil prices closely and have also climbed as oil prices went up.

CAA asserted powers in its act after Shell and Laugfs stared increasing LP gas prices in step with changes in the world market.

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Shell Gas Lanka, majority owned by Royal Dutch Shell, says losses this year due to selling below cost are over Rs.

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500 million.

Shell Gas Lanka, which is still partly

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