The Mauritian government is bracing for a potential fuel price hike as global market tensions escalate. The country's Minister of Commerce and Consumer Protection, Michaël Sik Yuen, stated that the current instability in the global market could lead to an increase in fuel prices. The price of petroleum products has been under pressure, with the cost of transportation rising and trade routes disrupted.
According to Minister Sik Yuen, the situation in Saudi Arabia, where the oil pumping system was destroyed, has contributed to the global market instability. The country has announced that it will not be able to supply its customers until the end of October. Additionally, China has stopped its exports to prioritize its domestic market. However, Mauritius has a guaranteed supply of petroleum products through its contract with Indian Oil Corporation.
The Petroleum Pricing Committee (PPC) will meet to determine if a price adjustment is necessary. As of September 21, the price gap for gasoline was 9.94%, which could result in a price increase from Rs 70.65 to Rs 77.70 per liter. For diesel, the gap was 10.86%, potentially leading to a price rise from Rs 71.25 to Rs 78.35 per liter. The current prices are still lower compared to other countries in the region.
The government's Price Stabilization Account has been affected by the current prices, with a deficit of Rs 3.32 billion. Minister Sik Yuen acknowledged that the government is doing its best to maintain the current prices but may need to adjust them soon. He also compared the fuel prices in Mauritius to those in other countries, highlighting that the prices are relatively lower.
The shortage is not limited to fuel, with some consumers reporting difficulties in finding liquefied petroleum gas (LPG) in certain retail outlets. However, Minister Sik Yuen assured that the State Trading Corporation (STC) has a sufficient stock of LPG, with approximately 51 days of consumption in reserve. The issue lies with the distribution of certain LPG cylinders.
The distribution problems are attributed to importation difficulties and freight issues. Minister Sik Yuen also mentioned that some LPG cylinders are being used illegally for gas transshipment, particularly for vehicles. The police are working with the ministry to address this issue.
The situation is also affecting the supply of rice, with a shipment delayed due to problems with vessels departing from Pakistan. However, some shipments have been made, and new arrivals are expected in October. Meanwhile, Kushal Lobine, a local politician, has proposed a temporary reduction in fuel taxes to alleviate the impact of rising fuel prices on consumers.
Key points
- Mauritius may increase fuel prices due to global market tensions.
- The government has a guaranteed supply of petroleum products through Indian Oil Corporation.
- The price adjustment will be determined by the Petroleum Pricing Committee.
