Fuel: overload 3 Rs could be reintroduced
17 June 2011
Motorists will soon be fixed on the new fuel prices. It could be that the overhead imposed Rs 3 on every liter of oil is reintroduced to cover losses incurred by the State Trading Corporation (STC) because of "hedging" on the purchase of fuel.
The finance minister, who attended this morning to launch an information campaign about the services offered by the Department of Social Security, says there will be an adjustment in fuel prices if necessary.
Pravind Jugnauth said that the extra three Rs (hedging loss) was abducted in March to "fight inflation"."But I also informed the public that everything will depend on the evolution of fuel prices on the international market.We are to follow the evolution of prices and if necessary there will be a readjustment of prices.(...) We must be responsible for the management of our institutions so that they do bankruptcy, "he said.
Gasoline currently sells for Rs 49, while 30 per liter per liter of diesel costs Rs 41, 20.