Petrol and Diesel: Towards Rise in Prices

While for the past year, the average price per barrel was 111 USD, it was at 125.47 Friday, reflecting a trend that has lasted long enough. In addition, projected on the international market, believe it will be around 120 USD at the end of the year. 

This therefore leaves little choice to PPC. Moreover, Megh Pillay, CEO of State Trading Corporation (STC), says that "the situation is not very good, although overall, the fundamentals are reasonable. We are monitoring the situation closely, and from day to day. " He stated that it "must not delude ourselves. If the political tension continues internationally, including in the Middle East, this will continue to have an impact on oil and then there will be no other choice but to pass it on to consumers. But, the value date, the situation is relatively good. "

Since March 2011, the pump price in Mauritius remained unchanged, despite a sharp increase in oil prices internationally. March 14, gasoline was set at Rs 51.30 a liter and diesel at Rs 43.50. A few days later, on March 29, the CPP committee decided to revise the price at Rs 49.30 and Rs 41.20 respectively. Since then, the pump price was unchanged, avoiding consumers to suffer the vagaries of world prices. Since then, there has been no adjustment. 

A quick scan at this level, shows that the price of oil has evolved sawtooth, but ended up almost to the end of each month since January 2011 . But since late January, the price of oil has shot up dramatically. 

A local analyst said that a price increase is "almost inevitable" given the circumstances. Only a significant drop in oil prices could prevent price increases. At STC, we emphasize, however, it is still too early to decide.