Press Release (PPS) - 04 August 2017



The Petroleum Pricing Committee (PPC) met on Friday 4 August 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 per Regulation 5(3):


Product
Retail Price
(Rs/Litre)
Mogas
44.90
Gas Oil
35.35


On 15 February 2017 the retail price of Mogas was fixed at Rs42.70 per litre and that of Gas Oil at Rs32.45 per litre. The Reference prices used at that time were US$ 553.42 per M.Ton for Mogas and US$63.97 per barrel for Gas Oil. Based on these Reference Prices, the retail prices of Mogas and Gas Oil should have been increased by Rs 7.9471 per litre or 20.46% and Rs 7.3818 per litre or 25.02% respectively but had to be restricted to 10% in accordance with the Regulations. Hence, since that date, STC has incurred losses on each tanker of Mogas and Gas Oil resulting in a total deficit of Rs 216.5 million in the Price Stabilisation Account (PSA) as at 4 August 2017.


Mogas (Essence)


On 15 February 2017, the balance in the PSA in respect of Mogas was negative by Rs62.9 million. As the increase brought on that day was limited to 10% in accordance with the Regulations, a loss of Rs3.5627 per litre had to be borne by STC as indicated in our press release of that date. As such, as at 4 August 2017 the PSA has reached a negative balance of Rs193.3 million. Therefore, the retail price of Mogas has been increased by Rs 2.20 per litre or by 5.15%.


Gas Oil (Diesel)


On 15 February 2017 the increase in retail price of Gas Oil had to be limited to 10% instead of 25.02% in accordance with the Regulations. Accordingly, a loss of Rs3.8537 per litre had to be borne by STC as stated in our press release of that date. As such, the balance in the PSA for Gas Oil has a negative balance of Rs 23.2 million as at 4 August 2017. Therefore, the retail price of Gas Oil has been increased by Rs 2.90 per litre or by 8.94%.


The new retail prices are effective as from 00.00 hr on Saturday 5 August 2017 .The evolution of the FOB prices of Mogas and Gas Oil since 15 February 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 2.20 per litre or 5.15 % and Rs 2.90 per litre or 8.94% respectively as shown below:



    Mogas
    Gas Oil
    Reference Price - US$ per metric ton
    525.34
    -
    Reference Price - US$ per barrel
    -
    61.85
    CIF - US$/litre
    0.4326
    0.4163
    Exchange rate - Rs/ US$
    34.15
    34.15
    Rupees per litre
    CIF
    14.7733
    14.2166
    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
    (0.0038)
    0.0045
    TRANSFER PRICE TO OIL COMPANIES
    35.2795
    27.1811
    Oil Companies' operational expenses and wholesale margin
    1.9300
    1.7600
    VAT (15%)
    5.8565
    4.6109
    WHOLESALE PRICE
    43.0660
    33.5520
    Retail margin
    1.8340
    1.7980
    RETAIL PRICE (Price at Petrol Service Station)
    44.9000
    35.3500




    04 August 2017