Mauritius maintains gasoline and diesel prices, waving Rs4.7 billion deficit

The Petroleum Pricing Committee (PPC) of the State Trading Corporation (STC)has maintained the retail prices of gasoline and diesel at their current levels of Rs74.10 and Rs54.55 per litre respectively. 

At its latest meeting, the PPC reportedly used the new Reference Price of US$94.31 per barrel for diesel.

As such, the STC said the retail price of diesel should be have been increased to Rs59.60 per litre, an increase of Rs5.05 per litre or 9.26%.

However, the Minister has reportedly disapproved the recommendation. “As such, a loss of Rs4.391 per litre of Gas Oil is carried forward,” it said.

The Committee also took note of the evolution of world prices of Mogas and Gas Oil and considered the deficit of Rs4.7 billion in the Price Stabilisation Account (PSA).

It was highlighted that at the previous meetings of the PPC, the full increase in prices of Mogas and Gas Oil had not been passed on to consumers due to the limit of 10% increase allowed by the Regulations, despite the substantial surge in world prices.

This has resulted, STC said, in a deficit of about Rs4.7 billion in the Price Stabilisation Account.

Several economists and consumer rights associations said they were shocked that the STC used the wrong reference Price. “Prices should have gone down. It is shocking that the people are being called, once again, to foot the bill of incompetence.”

Source: Le Mauricien