Legal Ignition

Dec 17, 2008 (LBO) – Sri Lanka’s supreme court ordered the government to reduce the price of petrol to 100 rupees a litre from midnight Wednesday and consider reducing the price of diesel as well.

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The order was given in response to a public interest petition filed by an opposition lawmaker.

Petrol is now priced at 122 rupees and 135 rupees for the two types sold.

Court also ordered the government to narrow the existing margin in the prices of 90 and 95 octane petrol.

It said that if the price of imported petrol falls further, additional taxes could be levied and the money should go to a stabilization fund.

Court also asked the Secretary to the government Treasury to consider reducing the price of ‘super diesel’ which it said was now 15 rupees in excess.

It asked the Treasury Secretary to issue directions on new prices to the two retailers, state-owned Ceylon Petroleum Corporation (CPC) and the listed Lanka Indian Oil Corp, a unit of Indian Oil.

The court rulings were in response to petitions on the government’s fuel pricing methods and a controver