The Association of Consumers of Mauritius (ACIM) has called on the Ministry of Commerce to implement strict price controls following a 10% increase in fuel prices. The move aims to protect consumers' purchasing power, which is already under strain. According to ACIM's Secretary General, Jayen Chellum, some traders may take advantage of the situation by inflating prices, which could disproportionately affect low-income households.
The recent fuel price hike has seen the cost of petrol rise from Rs 70.65 to Rs 77.70 per liter, while diesel has increased from Rs 71.25 to Rs 78.35 per liter. This development has sparked debate on potential measures the government could take to mitigate its impact. The ACIM is advocating for the introduction of maximum mark-ups to prevent the fuel price increase from being passed on to consumers in an unfair manner.
In response to the fuel price hike, the Reform Party has proposed a temporary reduction in certain taxes and contributions included in fuel prices. The party's leader, Roshi Bhadain, suggests a reduction of Rs 10.40 per liter for six months, which he believes would help alleviate pressure on consumers. He proposes removing two taxes and transferring the amounts to the Consolidated Fund of the Ministry of Finance.
Roshi Bhadain's proposal involves removing the Re 1.85 contribution to the Road Development Authority (RDA) and transferring the contribution for household gas, rice, and flour, which totals Rs 7.20, to the government. He also suggests abolishing the Rs 1.35 Value-Added Tax (VAT) on these items. According to Bhadain, this would bring the price of petrol down to Rs 67.30 per liter, providing relief to households struggling with inflation.
The Mauritius Chamber of Commerce and Industry (MCCI) has expressed concerns about the impact of the fuel price hike on businesses, particularly those already facing difficulties. MCCI's Secretary General, Dr. Drishtysingh Ramdenee, notes that the increase in fuel costs will have a ripple effect on overall costs and may put additional pressure on companies. The MCCI is advocating for a review of margins and fiscal relief to support businesses.
The fuel price hike has also raised concerns about its potential impact on interest rates. Sutthyudeo Tengur has cautioned that it is too early to determine whether the increase will affect the Repo Rate, which could have implications for borrowing costs. The MCCI is also monitoring the situation closely, as changes in interest rates could have significant consequences for businesses.
As the situation continues to unfold, the ACIM is urging the Ministry of Commerce to ensure that the fuel price increase does not lead to unjustified price hikes. With households already facing financial strain, the consumer association emphasizes the need for close monitoring of prices and swift action to protect consumers' interests.
Key points
- The Association of Consumers of Mauritius (ACIM) has called for strict price controls amid a 10% fuel price hike.
- The Reform Party has proposed a temporary reduction in certain taxes and contributions included in fuel prices.
- The Mauritius Chamber of Commerce and Industry (MCCI) is advocating for a review of margins and fiscal relief to support businesses affected by the fuel price increase.
