Dec 16, Colombo: Soon after the Supreme Court ordered to make a new formula for Sri Lankan oil prices a widespread oil shortage has taken place in the country.

Sources at the Ceylon Petroleum Corporation (CPC) said that most of the gas station owners have cancelled their orders as they are expecting further price reductions in the near future.

Due to this situation oil shortages have been reported along the main southern highway, Galle road and in Horana area this morning.

"If the shed owners don't order the fuel the situation will get worsen," the CPC said.

Sri Lanka Supreme Court yesterday rejected the government’s petroleum pricing structure and ordered a new formula that will see retail prices reduced by as much as 21 percent.