Petroleum Products: A Lucrative Business for the State!

11 years, 9 months ago - 9 March 2013, The Défi Media Group

Rs 5 billion. This is the amount that motorists had to cough up to cover the failure of hedging the State Trading Corporation (STC).

Rs 5 billion is also the amount of key government excise and Value Added Tax (VAT) on the sale of gasoline. While STC makes a profit of more than half a billion rupees on sales of these petroleum products. Is it logical that motorists pay more?

6%. This is the level of the recent increase in gasoline prices. The reasons for this increase in gasoline prices vary. Rising CIF (Cost Insurance Freight) or U.S. dollar, are few. From 2010 to 2012, the Platts price of gasoline (global reference) increased from U.S. $ 729 per tonne to U.S. $ 1,021 in 2012 (+40%). The price of gasoline sells for Rs 27.2 CIF, almost half of the final price.

As for the U.S. dollar, the economic spokesman of the Opposition, the member of Mauritian Militant Movement, Kee Cheong Li Kwong Wing, explains that the government has deliberately weakened the local currency. "The State Trading Corporation (STC) states that the dollar has reached Rs 31.25. But this is due to a devaluation of the rupee artificially made by the government. The Finance Minister Xavier-Luc Duval, has also said that our currency was overvalued by 13%.

The U.S. dollar is incumbent upon the government. "He added:" With the devaluation, and rising gasoline prices, the government now collects higher tax revenues (especially as the demand for gasoline is inelastic). More taxes are levied on the back of the consuming public. The government should refrain from collecting the tax outstanding. But, on the contrary, it applies the VAT ... these additional tax revenues, which adds a tax on a tax. "

The government does not seem to rub one's hands. The STC also raking in hundreds of millions of rupees. In 2011, STC has recorded a margin of Rs 1.9 billion on the sale of petroleum products. After payment of subsidies for rice, flour, and gas appliances, the profits of the STC amounted to Rs 760 million. "Why the public should be mowed with exorbitant prices while the STC is excessive profits? For what purpose? To fill the coffers? "Asks the deputy mauve. Kee Cheong Li Kwong Wing also stresses that "the rising price of gasoline is unjustified and unjustifiable. The government does not need to extort more money from the public. It already boasts of surplus cash with the National Resilience Fund (NRF), sound public finances and a budget deficit lower. Why unnecessarily penalize the public? '

Among the samples qu'opère government on every liter of petrol or diesel and include the MID Levy contribution to the Road Development Authority (RDA). Yet, despite the MID Fund contribution to the fund, which started the year with Rs 100 million to end the year dry, according to government projections. In 2012, he started with Rs 1.4 billion and 31 December, the remaining amount of Rs 636 million was transferred to the national budget.

In that it is the contribution to the RDA, the public contributes to decongestion projects underway in the four corners of the country and on the road Terre-Rouge/Verdun. However, it must also fork out for when using this route will be introduced a toll system.