The Petroleum Pricing Committee (PPC) met on Wednesday 20 December 2017 and after verification of the computation of the retail prices of Mogas and Gas Oil, as provided for under Regulation 8 of the Consumer Protection (Control of Price of Petroleum Products) Regulations 2011 (as amended), approved that the retail prices be increased as follows as per Regulation 5(3):

Product       

Retail Price

Rs / Litre

Mogas

47.30

Gasoil

38.10


On 5 August 2017 the retail price of Mogas was fixed at Rs44.90 per litre and that of Gas Oil at Rs35.35 per litre. The Reference prices used at that time were US$ 525.34 per M.Ton for Mogas and US$61.85  per barrel  for Gas Oil. The Price Stabilisation Account (PSA) had a negative balance of Rs 216.5 million as stated in the press release of 4 August 2017. Since then, there has been an upward trend in the FOB prices on the world market which has resulted in further deficit in the balance of the PSA to Rs 333 million.
The Reference prices used for the present exercise, that is the actual price for September to November 2017 and the future prices for December 2017 to February 2018 are US$600.39 per M.Ton for Mogas representing an increase of US$75.05 per M.Ton (14.29%) and US$72.22 per barrel for Gas Oil representing an increase of US$10.37 per barrel(16.77%) compared to August 2017 . 
The retail price of Mogas has been increased by Rs 2.40 per litre or by 5.35% and that of Gas Oil has been increased by Rs 2.75 per litre or by 7.78% in accordance with the Regulations. The new retail prices are effective as from 00.00 hr on Thursday 21 December 2017.

The evolution of the FOB prices of Mogas and Gas Oil since 5 August 2017 are shown below:

                                                                                Graph 1 - Mogas                                                                     

                                                

                                                                              Graph 2 - Gas Oil

                                               


Based on the new Reference Prices, the retail prices of Mogas and Gas Oil have been increased by Rs 2.40 per litre or by 5.35 % and Rs 2.75 per litre or by 7.78% respectively as shown below:

                         

Mogas

Gas Oil

Reference Price  - US$ per metric ton

600.39

 -

Reference Price  - US$ per barrel

-

72.22

CIF - US$/litre

0.4850

0.4773

Exchange rate – Rs/US$

34.7500

34.7500

 

Rupees per litre

CIF

16.8538

16.5862

Excise duty

14.8000

7.3000

Maurice Ile Durable levy

0.3000

0.3000

Contribution to Road Development Authority

1.8500

1.7500

Contribution to Rodrigues transportation and storage

0.4100

0.4100

Contribution to the construction of storage facilities for petroleum products

0.1000

0.1000

Contribution to subsidy on LPG, Flour and Rice

2.7000

2.7000

STC’s operational expenses

0.3500

0.4000

Rounding of figures

0.0026

0.0262

TRANSFER PRICE TO OIL COMPANIES

37.3664

29.5724

Oil Companies’ operational expenses and wholesale margin

1.9300

1.7600

VAT (15%)

6.1696

4.9696

WHOLESALE PRICE

45.4660

36.3020

Retail margin

1.8340

1.7980

RETAIL PRICE (Price at Petrol Service Station)

47.3000

38.1000

 

20 December 2017