Petroleum Products: Renewal of the Agreement STC-MRPL

The previous agreement, signed in 2010, had expired on July 31. The new agreement was signed on July 15. Both parties have ratified the new contract after agreeing on different terms such as 'billing cycle', the 'pricing formula' and the price at which MRPL sells petroleum products.

Asked for a statement, the CEO of the State Trading Corporation Megh Pillay said he was very satisfied with this agreement and negotiations that both parties have had. For him, this renewal of the agreement is a good thing. He also welcomed the new conditions are now applied in the new agreement.

1.3 million tonnes per year for the STC

The new agreement between Mangalore Refinery and Petrochemicals Ltd (MRPL) and State Trading Corporation (STC) for the supply of petroleum products country is already in force. Under this agreement, the MRPL sells annually 1.3 million tons of petroleum products to the STC.

Since 2006, MRPL is the only provider of Mauritius on petroleum products. The Ministry of Commerce, it justifies this decision by saying that the Indian refinery proved to be a reliable supplier for the country. In 2012, Mauritius has imported more than 1.3 million tons of petroleum products (gasoline, diesel, heavy oil and Jet A1) of MRPL, representing an increase of 15% compared to 2011.

The two parties are engaged in discussions concerning the construction of an oil terminal in the port area. The MRPL has expressed interest in being part of this project at an estimated cost of Rs 6 billion. This terminal should, according to Commerce Minister Cader Sayed-Hossen, make Mauritius a hub Petroleum in the region. Initially, investments of around Rs 1.3 billion are planned. dpuf