Petroleum Products Liberalization: Rs 125 Million Per Year to Fund STC Losses
6 December 2013 - Défi Media Group
A brand new item has appeared in government spending. This is the Bunkering Project Scheme, which is to pay Rs 125 million each year from 2014 (until at least 2016) to the State Trading Corporation (STC). The objective is to subsidize the shortfall it will save because of the liberalization of petroleum products.
The Bunkering Project Scheme follows the budget measure to break the monopoly held by the STC on petroleum products. Thus, other oil companies will supply fuel at sea to vessels transiting through Mauritius. It was previously the privilege of STC. To do so, these companies may import fuel only on condition not to sell on the local market.
Each year, the STC sells about 320 000 tonnes of heavy oil from ships to refuel in the Mauritian port. This enables him to garner turning around Rs 250 million per year profit.
However, the Ministry of Finance, we are of the opinion that this monopoly prevents Maurice to become a regional hub for refueling ships. Studies have shown that there is an immediate demand for 1 million tons of oil and a potential 3 million tonnes in the medium term for refueling ships.
35,000 vessels take the Cape route to Asia and especially China per year and about a thousand of them come refueling in Port Louis. From the Port of Durban (South Africa), and Singapore, which scrape the development, our capital to some benefits, although it is more expensive. The government intends to capitalize on it. But to be more attractive, must be liberalized, support those who are in favor of the project.
In his budget speech, Xavier-Luc Duval said that "liberalization 'bunkering' will increase the number of ships calling at Port Louis, leading to a larger transfer." It provides that the private sector will invest Rs 2.5 billion to help Mauritius become a Bunkering Hub.
As STC, she sees its sales fall because of this action. But the government grant will allow him to fully or partially absorb the shortfall that record. "The STC certainly lose money because it will sell less heavy oil to ships, but we will recover the money otherwise, including ancillary activities. Then now, we perceive U.S. $ 11-12 per tonne sold through the MID Levy. A strong sales allow us to recover the shortfall of STC, "says a close case.
However, some skeptics argue that "the shortfall will be even higher" because ships will be supplied outside the waters under the control of the Mauritius Ports Authority. And that, they argue, will have an impact on port charges.
On the other hand, the storage of petroleum products should be revised upwards as it should from 120 000 to 270 000 tonnes by 2016. Facilities available to Mauritius does not allow him to store as much. Investments are also expected in new tanks and networks supply pipes.
An estimated Rs 2 billion investment needed, besides the construction of new docks.
A location has already been identified. It is located in Albion, near the planned site for the proposed coal-fired Power CT.
The government does not yet account the brunt alone. He expects a large private.