Fuel Price Fury: Government Contemplates Review as Surge Sparks Public Outcry

Is the government considering a review of the recent fuel price hikes for gasoline and diesel, which followed the State Trading Corporation’s (STC) Petroleum Pricing Committee meeting last Saturday?

No decision has been made yet but, according to l’Express, Prime Minister Pravind Jugnauth, aware of the anger among motorists and public transport operators, has decided to pass the matter on to Finance Minister Renganaden Padayachy.

“Speaking at the Intercontinental Hotel during the Africa Partnership conference, the Finance Minister said that he would analyse all the data related to the fuel price increases to determine if there are any measures that can be taken to ease the burden on motorists,” l’Express reported.

Padayachy also reportedly noted that the Brent crude oil price in the international market has seen a significant surge in recent weeks.

“I can’t say anything at this stage about the form these support measures will take, if indeed there will be any,” he was quoted as saying.

Furthermore, Padayachy pointed out that any increase in fuel prices would have a direct impact on inflation. “Every Re 1 increase in gasoline and diesel prices combined will raise the inflation rate by 0.2% each month. With three more months left in the year, we will have to calculate the effect on the annual inflation rate by the end of 2023.”

Gasoline prices have risen from Rs 69 to Rs 72.10 per litre, representing an increase of Rs 3.10. Simultaneously, diesel prices have increased from Rs 54.55 to Rs 60 per litre, marking a Rs 5.45 hike. 

Source: l’Express