Fuel Prices: Price Increase for Consumers Avoided

This status quo has been maintained despite soaring oil prices on the international market which is at 112 dollars against 103 dollars during the course of November. This can be explained from the point of Price Stabilization Account (PSA) to absorb price increases. This account allows thus relieve consumers.

If there is a question many are asking is: why the price of petrol and diesel had not dropped when there was a decline in oil prices at the beginning of last November? Before the meeting of PPC November, oil prices globally fell to $ 106 at $ 103. This represented a decrease of 4.5%.

However this decline was insufficient to be passed on to consumers. This difference had been poured into the Price Stabilization Account. But shortly after the November meeting, the international price has taken the elevator. And despite this, the PSA was able to contain the impact on motorists in the past year pricing.

In media attention, it was noted that the PSA is not only dampens the rise in price on the international market. Indeed, so far this has also prevented the effect of three other drivers increases. Including increasing the profit margin of local oil companies so they can invest in new storage tanks, the recent increase in the profit margin of service stations for the sale of gasoline and diesel and thirdly as announced in the 2014 budget, the removal of one rupee per liter of petrol and diesel for the renewal of the bus fleet. Alone, the latter measure is equivalent to about Rs 450 million per year.