The Petroleum Pricing Committee (PPC) met on Thursday 11 May 2023 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 maintained at its current level as per Regulation 5 (2) and that of Gas Oil be increased by 9.26%, as per Regulation 5 (3), that is to Rs 59.60 per litre.
The Committee also took note of the evolution of world prices of Mogas and Gas Oil and also considered the deficit of Rs 4.7 billion in the Price Stabilisation Account (PSA).
Mogas (L’Essence) – Based on the new Reference Price of US$ 865.47 per metric ton for Mogas, that is, the actual prices for February to April 2023 and the future prices for May to July 2023 at an exchange rate of Rs 46.08/US$, the calculated retail price works at Rs 72.00 per litre, that is a decrease of 2.83%. However, Regulation 5(1)(a) states that “the retail price of a petroleum product shall be maintained when its calculated price is lower, by less than 4% than the existing retail price.” Also, Regulation 5 (2) states that “subject that there are funds in the PSA, the retail price of a petroleum product shall be decreased.” Therefore, the retail price of Mogas is maintained at Rs 74.10 per litre.
Gas Oil (Diesel) – Using the new Reference Price of US$ 94.31 per barrel, that is, the actual prices for February to April 2023 and the future prices for May to July 2023 at an exchange rate of Rs 46.08/US$, the retail price of Gas Oil should be increased to Rs 59.60 per litre, that is, by Rs 5.05 per litre or 9.26 %, as provided for under Regulation 5 (3)(a).
The new Price Structures are as follows:
