With oil and gas prices rising sharply worldwide, it is feared that prices at the Mauritian pumps could also increase soon. The State Trading Corporation (STC) said it is still premature to assess the impacts of this increase.
But experts have warned that Mauritian motorists, businesses and the economy as a whole will directly be hit.
“The decision could lead to an increase in prices, amplifying inflation, encourage central banks to increase their interest rates, reinforce the risks of recession, amongst others.”
During the week-end, Saudi Arabia, Iraq and several Gulf states announced they were cutting supplies by one million barrels of oil a day and Russia, their fellow member in the Opec+ group, was extending its cut of half a million barrels per day until the end of the year.
Bhim Sunassee, President of the Petrol Retailers Association, has hit at the STC.
“When they (STC) had to bring down the prices, they didn’t. Now, consumers are bound to be hit,” he said.
Megh Pillay, a former director of the STC has also hit at the Price Stabilization Account – which was specially designed to cushion price fluctuations.
“However, this mechanism has been made totally powerless by new levies, such as those imposed for roads, buses, water, transport to Rodrigues, vaccine, solidarity fund and subsidies,” he said.
“As a result, the commercial surpluses made by the STC every time it sells oil at higher prices, have been diverted to these various expenses elsewhere. Since we did not save when prices were low, we must now directly bear the consequences of the price increases.”
Source: Defi Media
