In response to mounting public anger over rising fuel prices, the government implemented a “face-saving” operation on Friday evening.
According to Le Mauricien, the Petroleum Pricing Committee (PPC) convened urgently and revised the gasoline price downward from Rs 72.10 to Rs 69 per litre.
However, the government simultaneously raised the diesel price from Rs 60 to Rs 63.95 per litre.
Finance Minister Renganaden Padayachy proposed allocating Rs 1 billion to support the STC’s Price Stabilisation Account and offer subsidies of Rs 5 per litre of diesel to various business operators, including bakeries, public transportation, and small and medium-sized enterprises.
The PPC, which met for the second time in eight days, necessitated the fuel price adjustments.
To offset the impact on the Price Stabilisation Account deficit, estimated at over Rs 5 billion, Finance Minister Padayachy allocated approximately Rs 1 billion.
The PPC lowered the gasoline price from Rs 72.10 to Rs 69 per litre but increased the diesel price from Rs 60 to Rs 63.95, a substantial Rs 9.40 hike within a week.
Notably, the Price Stabilisation Account’s deficit had grown from Rs 1.5 billion in December 2021 to Rs 5.2 billion, with a negative balance of Rs 5.1 billion attributed to diesel sales.
The STC had already suggested a diesel price of Rs 64.15 last Saturday, considering global market fluctuations.
The government acted swiftly, developing regulations to empower the commerce minister to intervene in the PPC’s decision.
Furthermore, the finance ministry is preparing to grant a Rs 5 subsidy per litre of diesel to affected economic operators, including bakers, small and medium-sized businesses, and public transportation providers.
Source: Le Mauricien
