Who actually controls fuel prices?

After the second fuel price adjustment in a week, questions have emerged regarding the transparency and independence of the Petroleum Pricing Committee (PPC) responsible for setting fuel prices in Mauritius.

Gasoline prices have decreased to Rs 69 per litre, and diesel now stands at Rs 63.95.

Nishal Joyram, a former hunger striker, expressed apprehension about what he perceives as a “confusing situation” surrounding fuel tariffs.

He suggested that discrepancies in the State Trading Corporation’s (STC) price references call for increased transparency in disclosing actual import costs.

Joyram also raised concerns about the STC’s price references being significantly higher than those in Singapore.

He points out the country’s 9% inflation rate and depreciation of the Mauritian rupee, making it harder to attribute inflation solely to the Covid-19 pandemic and the war in Ukraine.

Additionally, Joyram questionned the PPC’s autonomy, highlighting the government’s contradictory statements about their influence over the STC during his strike last year.

The recent Cabinet request to the PPC to lower rates raises doubts about the committee’s true independence.

Economist Takesh Luckho underscored the significant role of taxes in the current fuel pricing structure and called for greater political determination to address this issue.

He added that regulating fuel prices primarily requires political will and budgetary commitment. 

Source: Defi Media