LIOC obeyed the court ruling last week but has increased again citing heavy loses

The lost occurred as Sri Lanka government did not reduce the tax imposed on fuel imports, Lanka Indian Oil Company (LIOC) said.

In a petition to the Supreme Court on Friday, LIOC Managing Director KR Suresh Kumar said the company had to increase the price of a litre of petrol to 122 rupees as a result.

The Supreme Court ordered Sri Lanka authorities to reduce the price of a litre of petrol to 100 rupees on 17 December.

President's responce

The cabinet of ministers are yet to decide on the court ruling but Mr. Suresh Kumar told BBC Sandeshaya on 19 December that it would reduce the price obeying the court ruling.

The needs of a mere 04 per cent of people who use petrol for cars could not supersede the needs of more than 90 % of the people who travelled by bus and train President Mahinda Rajapaksa

Noting that the function of good government required proper understanding among the Legislature, the Executive and the Judiciary, President Mahinda Rajapaksa has said that he needs revenue for development and the war against the LTTE.

“The needs of a mere 04 per cent of people who use petrol for cars could not supersede the needs of more than 90 % of the people who travelled by bus and train,” he told a gathering in the Presidential Secretariat on 22 December.

The LIOC has requested the court to make a fresh ruling considering the company’s loses as a result of taking steps to obey the ruling.

LIOC is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates fuel stations in Sri Lanka.