STC was not conceived to operate on a profit-making basis in respect of essential commodities under its control.

It, therefore, operates its lines of business in Gasoline, Diesel, LPG, Flour and Rice for domestic consumption and public transport strictly on cost-basis with no profit mark-up. However, it does practise a reasonable competitive commercial mark-up on all its international trade transactions such as bunker supplies and commercial civil aviation supplies. Surpluses generated in its day-to-day purely commercial transactions are currently utilized to absorb the trading losses arising from subsidies rather than paid as dividends to its sole shareholder, the Government of Mauritius. Over and above those commitments, STC has accumulated some Rs 1.2 billion as reserves over the past three financial years. It has, thus, regained its financial health after absorbing unfortunate hedging losses sustained in 2008 with the collapse of the “Oil Price Bubble” that swelled to its limit in the middle of that year.

Final  Accounts