The rumors have been confirmed at around 8pm on Wednesday 18 May. The increase in fuel prices is a reality and now costs 10% more. Petrol went up to Rs 74.10 and diesel to Rs 54.55 as of midnight on Wednesday. This marks the fourth increase for this year since 29 December 2021. Petrol stations have been jammed since this morning with the announcement of the Opposition Leader but the hope was kept alive with the STC’s denial until its own official announcement at around 8pm.
4 X 10% in 5 months
This proposal by the Petroleum Pricing Committee (PPC) meeting on Wednesday 18 May was endorsed by Sunil Bholah, Acting Commerce Minister, in the absence of Soodesh Callichurn. The increase is 10%. Thus, the petrol litre will go up from Rs 67.40 to Rs 74.10 and diesel from Rs 49.60 to Rs 54.55.
For the year 2022 alone, the country has experienced until now 4 increases. Since midnight on December 30 last year, the price of petrol has gone up from Rs 50.70 to Rs 55.75 and diesel from Rs 37.30 to Rs 41, while on February 27, the increase was from Rs 55.75 to Rs 61.30 per litre of petrol and diesel from Rs 41 to Rs 45.10. On April 20, 2022, the price went up from Rs 61.30 to Rs 67.40 per litre of petrol and diesel from Rs 45.10 to Rs 49.60 per litre. The total of these increases in five months is Rs 23.40 for petrol and Rs 17.25 for diesel.
Warning by XLD
This news is heavy for the motorist as for any other consumer because the snowball effect will soon be felt again, or rather, for the fourth time in these five months. But there are no surprises. Xavier Luc Duval, the Leader of the Opposition, had announced it but without details during his parliamentary debates on Tuesday 10 May and had reiterated on Wednesday on his social networks. But this news was denied by the STC but half answered by Alan Ganoo on 18 May.
Loss announced by the STC
The STC reports a loss of Rs 2.06 on a litre of petrol, which should have increased by Rs9.07 or 13.46% to Rs76.47. Mogas costs US$1,133.54 per tonne at an exchange rate of Rs43.50 per dollar. The loss on the litre of diesel is estimated at Rs 12.66. The litre should cost Rs 69.11 and the increase should be Rs 19.51 or 39.33%. The price of a barrel of Gas Oil is US$145.13 on an exchange rate of Rs 43.50. For both fuels, the calculation of the increase has been made on 9.94% on Mogas and 9.98% on Gas Oil. If the 10% threshold is maintained in the calculations, it is because of Regulation 8 of the Consumer Protection (Control of Price of Petroleum Products) Regulations 2011.
