The price of fuel in Mauritius could rise by 10% for gasoline and 12% for diesel, according to Minister of Commerce and Consumer Protection, Michael Sik Yuen. This potential increase is due to the current global market tensions and their impact on crude oil prices. A 10% hike would translate to an additional Rs 7.07 per liter of gasoline, making it approximately Rs 77.72 per liter.
The Petroleum Pricing Committee (PPC) may convene a meeting soon to discuss the potential price adjustment. The committee normally meets every four months but can be called earlier if market conditions change significantly. A meeting is not ruled out for this week. The last PPC meeting on August 14 resulted in a 10% increase in gasoline prices, from Rs 64.25 to Rs 70.65 per liter.
The price of crude oil has fluctuated, reaching around $108 per barrel last week before dropping below $100 per barrel on September 21. The situation in Saudi Arabia and disruptions around the Strait of Hormuz have contributed to the price volatility. The State Trading Corporation (STC) monitors these developments, along with freight costs, in its calculations.
Suttyhudeo Tengur, president of the Association for Environmental and Consumer Protection (APEC), emphasizes that the crude oil price is only one factor in determining fuel prices. Other elements, such as refined products, stocks, exchange rates, freight, contractual premiums, and the Price Stabilisation Account, are also considered. He advocates for the publication of the complete calculation, including data on the stabilization fund, exchange rates, and stocks.
Since January, fuel prices in Mauritius have increased by approximately 21%. Gasoline prices have risen from Rs 58.45 to Rs 70.65 per liter, while diesel prices have gone from Rs 58.95 to Rs 71.25 per liter. The government is exploring ways to mitigate the impact on consumers, including a possible revision of the fuel price mechanism.
The government is also working on a potential modification of the fuel price mechanism. Currently, each liter of fuel includes a contribution of Rs 7.20 to finance subsidies on flour, rationed rice, and household gas. Reducing this contribution could provide relief to consumers but might lead to an increase in prices for these subsidized products.
A new shipment of fuel from the Indian Oil Corporation is expected to arrive on Wednesday, with a higher cost due to the increased global oil prices and transportation costs. This shipment will cover about three weeks of national consumption. The agreement with the Indian Oil Corporation aims to secure a stable supply in the face of market instability and commercial route disruptions.
Key points
- A potential 10% increase in fuel prices in Mauritius could see gasoline prices rise to approximately Rs 77.72 per liter.
