The Petroleum Pricing Committee (PPC) met on Saturday 27 January 2024 and after verification of the computation of the retail prices of Mogas and Gas Oil, as provided for under Regulation 8 of the Consumer Protection (Control of Price of Petroleum Products) Regulations 2011 (as amended), recommended that the retail price of Mogas be decreased from Rs 69.00 to Rs 66.20 per litre and that of Gas Oil be maintained at its present level as per Regulation 5 (2).
The Committee took note of the evolution of world prices of Mogas and Gas Oil and also considered the deficit of Rs 4.5 billion in the Price Stabilisation Account (PSA) of Gas Oil.
Mogas (L’Essence) – Based on the new Reference Price of US$ 804.35 per metric ton for Mogas, that is, the actual prices for November 2023 to January 2024 and the future prices for February to April 2024 at an exchange rate of Rs 45.15/US$, the new retail price works at Rs 66.20 per litre, that is a decrease of 4.1%.
Gas Oil (Diesel) – Regulation 5 (2) states that “subject that there are funds in the PSA, the retail price of a petroleum product shall be decreased.” Therefore, in line with the provisions of the Regulations, as the PSA of Gas Oil is in deficit by about Rs 4.5 billion, the retail price of Gas Oil is maintained at Rs 63.95 per litre.
The Committee also took note of the total deficit of about Rs 4.2 billion in the Price Stabilisation Accounts as shown in the table below. Moreover, it is to be highlighted that these losses pertain only to Mogas and Gas Oil and not to the other operations of STC. The deficits in the PSA have evolved as follows:
