The Petroleum Pricing Committee (PPC) met on Friday 24 May 2024 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), recommended that the retail prices of Mogas and Gas Oil be maintained at their present level as per Regulation 5 (1) and 5 (2).

The Committee also took note of the evolution of world prices of Mogas and Gas Oil and also considered the deficit of Rs 4.3 billion in the Price Stabilisation Account (PSA) of Gas Oil.

Mogas (L’Essence) –Based on the new Reference Price of US$ 858.08 per metric ton for Mogas, that is, the actual prices for March to May 2024 and the future prices for June to August 2024 at an exchange rate of Rs 46.84/US$, the new retail price works at Rs 69.66 per litre, that is an increase of 5.22%. Since the PSA for Mogas has a positive balance, the retail price is maintained at its current level in accordance with Regulation 5 (1).

Gas Oil (Diesel) – Using the new Reference Price of US$ 96.70 per barrel, that is, the actual prices for March to May 2024 and the future prices for June to August 2024 at an exchange rate of Rs 46.84/US$, the retail price of Gas Oil works at Rs 57.51 per litre. However, given that the PSA of Gas Oil is in deficit by about Rs 4.3 billion and as per Regulation 5 (2) which states that “subject that there are funds in the PSA, the retail price of a petroleum product shall be decreased,” the retail price of Gas Oil is being maintained at Rs 63.95 per litre.

The deficit in the PSA has evolved as hereunder:

                                                                                            

It is to be highlighted that the above deficits pertain only to Mogas and Gas Oil and not to the other operations of STC.

The evolution of the world prices of Mogas and Gas Oil from 1 January to 23 May 2024 is shown in the graphs below:

                      Graph 1 - Mogas

                   

 

                       Graph 2 - Gas Oil

                    

The retail prices of Mogas (L’Essence) and Gas Oil (Diesel) are maintained at Rs 66.20 per litre and Rs 63.95 per litre respectively.

The new Price Structures are as follows:

                         

Mogas

Gas Oil

Reference Price - US$ per Metric Ton

858.0800

 -

Reference Price - US$ per barrel

-

96.7000

CIF - US$/litre

0.7150

0.6575

Exchange rate – Rs/US$

46.8400

46.8400

 

                     Rupees per litre

CIF

33.4906

30.7973

Excise duty

11.8700

4.2200

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

0.0500

0.0500

Contribution to Subsidy on LPG, Flour and Rice

7.2000

7.2000

STC’s Operational Expenses

0.3500

0.4000

Fund to Price Stabilisation Account

(3.0054)

5.6014

TRANSFER PRICE TO OIL COMPANIES

52.2152

50.4287

Oil Companies’ Operational Expenses and Wholesale Margin

2.3500

2.1800

VAT (15%)

8.6348

8.3413

WHOLESALE PRICE

63.2000

60.9500

Retail Margin

3.0000

3.0000

RETAIL PRICE (Price at Petrol Service Station)

66.2000

63.9500

 

 24 May 2024