Since midnight as at 29th December, the price of fuel has gone up. Petrol is now Rs 5.05 per litre more expensive than diesel at Rs 3.70 and this represents an increase of 9.96% for petrol and 9.92% for diesel. Is this decision of the Petroleum Pricing Committee justified?
Inevitable
State Trading Corporation’s director, Rajiv Servansingh says the increase could not have been avoided, if not on the expense of the government: “The STC had no other choice due of the international situation. The organisation did everything it could so as not to increase fuel prices for a while, but this would weigh heavily on the STC. Even though petrol had gone up globally, there was no increase in the price of petrol since April except for the vaccination tax for Covid of Rs 2. The situation had taken from its resources to subsidise the difference waiting to see the situation change. The situation is such that the Petroleum Pricing Committee has preferred to pass this increase to the public. A ship will supply the country on 1st January and it is estimated that if the old prices remain in force, this will represent a big loss for the STC”.
According to the Petroleum Pricing Committee, the Mauritians should be happy because the increase should have been higher with the international price and exchange rate. In Reunion island, petrol is sold at 1.60 euros per litre and diesel at 1.22 euros per litre.
XLD: “Taxes at Rs26 per litre”
In a document sent to the press on Tuesday, Xavier Luc Duval, the Leader of the Opposition, does not talk about this increase in a whisper. Based on his calculations, he questions and denounces: “Petrol, that currently costs Rs25 per litre to import, will now be sold at Rs55. Why? Because petrol is taxed at Rs26 per litre, that is, Rs117 in taxes per gallon of petrol. All this is on top of the many new taxes of the Padayachy era. This is the unmistakable result of a policy based on waste, incompetence, corruption and nepotism, and an economic project based on the devaluation of the rupee. In this period of crisis and pandemic, prices have risen unprecedentedly and the purchasing power of Mauritians has been severely affected. Almost 100,000 Mauritians are unemployed, either totally or partially. A competent and responsible government should instead focus on eliminating waste and reducing the cost of living of the state. In the absence of such measures, this government has no moral right to impose such increases”.
A provocation
Trade unionists and observers are not silent either, denouncing a disguised increase announced on the night of 28th December. Others believe that it is a hard blow from the government at this time of year.
Mosadeq Sahebdin, the president of the Consumer Advocacy Platform (CAP), sees the fuel price increase as a provocation. He believes that “the Government is misguided to endorse a 10% increase in fuel prices on the eve of the New Year. This decision can be seen as a provocation for a population already impacted by the increase in food and medicine prices. It is unacceptable that the Government should use taxpayers’ money to pay for unproven drugs at excessive prices and impose a 10% increase on fuel prices.” CAP calls on the Government to reduce fuel taxes to cushion the impact of the rupee devaluation. It is certain that such an increase will have a significant impact on the prices of other products and services. He foresees a snowball effect in all sectors and thus, he calls on the government to reduce or even remove other taxes imposed on fuel.
