Lanka IOC brought down the price of a litre of petrol, at its filling stations to Rs. 100, from 12 midnight yesterday, after lawyers advised it to comply with the Supreme Court ruling, an official of Lanka IOC said.

Last Wednesday, the Supreme Court ruled that the government should cut petrol prices with immediate effect to Rs. 100 per litre but the government said it would only do so after the Cabinet perused the Court ruling.

The government is yet to announce its decision and CPC outlets continue to charge Rs. 122 per litre.

The failure of the Cabinet to decide whether to implement the Supreme Court order or not caused a shortage at the pumps, with filling stations delaying their orders until the downward revision is made so as to avoid making losses, but Petroleum Minister A. H. M. Fowzie told the media that CPC would absorb their losses.

The Supreme Court also specified a tax formula based on petrol at around 56 US dollars a barrel and where petrol prices do not come down below Rs. 100 a litre even if world oil prices were to fall further.

The Court order directed the Treasury to charge a higher percentage of tax from Lanka IOC.