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The Consumer Affairs Authority (CAA) plans to take legal action against Shell and Laugfs for prematurely increasing gas prices. The CAA says the gas retailers jumped the gun on a one-month waiting period, as required by law, before any price changes.
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"According to the law, if the CAA does not respond within one month of application for a price increase, the increase can go ahead," explains Chairman CAA, M I M Muhseen.
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The mix up is on the date of application.
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"Shell applied on July 30, but we wanted more information.
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So the date we took into account as the date of application was August 10," says Muhseen.
But Shell went ahead with a Rs.
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96 price increase counting one month from July 30.
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"If at all the price increase should actually happen from September 10," Muhseen told LBO.
Laugfs is also accused of a premature price increase when it put up the price of a 12.
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5 kg cylinder by Rs. 70 on Monday night.
"With Laugfs, the price should go up only on September 12," says Muh