SC fixes petrol price at Rs. 100 per litre

Wasantha RAMANAYAKE

The Supreme Court yesterday ordered the Treasury to sell petrol at Rs. 100 per litre with effect from midnight yesterday. The court made the order based on a formula tendered to court by the Treasury Secretary.

The formula was calculated on the basis of the Court directions taking the price US$ 56, the price of a barrel of imported refined petrol as at last month. The formula included the cost of production of one litre of petrol.

The Court ordered all petrol dealers to give effects to the court directions, accordingly. It also held the Treasury Secretary responsible for the implementation of the Court order. The Court also ordered the Treasury Secretary to determine realistic price for superior grade Octane 95 petrol in consultation with the CPC and the Lanka Indian Oil Company (LIOC). Counsel Uditha Egalahewa submitted that the current Octane 95 price is excessive and not realistic. The Petroleum and Petroleum Resources Development Ministry was also authorised to prevent the LIOC from getting undue gains in view of the subsidies granted in the privatization process.

The Court further directed the Secretary Treasury set up a stabilization fund. The fund draws money from the profits earned by the Government from the selling a liter of petrol at the price.

The Court made further orders to the Monetary Board of the Central Bank to report the findings of any officials involved in the hedging agreement who had been unduly gratified by the Standard Charted Bank.