Supreme Court moved against controversial oil hedging deal, more cases to follow
2008-11-26 19:14:08

With the controversy over the Sri Lankan oil hedging deals hotting up, Laugfs Gas Group Chairman W.K.H. Wegapitiya on Wednesday filed the first of many fundamental rights petitions expected in the Supreme Court against the deal and seeking that it be annulled.

Apart from a ruling to discontinue the controversial hedging contracts, Mr Wegapitiya is also seeking a proper pricing mechanism for petroleum products. The respondents cited in this petition are Petroleum Minister A.H.M. Fowzie and Ceylon Petroleum Corporation (CPC) Chairman Asantha de Mel among others. The Sunday Times in recent weeks broke the news about the oil hedging deal which has soured as the CPC went for the wrong hedge and will end by coughing out more than $300 million in coming months. It has drawn angry criticism from government, the opposition and the public, alike.

Several public interest groups have expressed interest in filing similar petitions on the grounds that the consumers will ultimately suffer for bad decisions by semi-public officials, saying fuel prices could have been reduced if not for such decisions. .