Following measures taken by Government as announced in the Budget speech 2018-2019, the Petroleum Pricing Committee (PPC) met on Thursday 14 June 2018 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), approved that the retail prices be decreased as follows as per Regulation 5(3):

Product       

Retail Price
Rs / Litre

Mogas

49.65

Gas Oil

40.00


The retail prices of Mogas and Gas Oil effective as from 16 May 2018 were Rs52.00 and Rs41.90 per litre respectively. The Reference prices used at that time were US$693.94 per M.Ton for Mogas and US$83.94 per barrel for Gas Oil. Since then, the FOB prices on the world market have remained high as shown in the graphs below, which have added upward pressure on world prices of petroleum products.

The Price Stabilisation Account (PSA) which was negative by Rs230.4 million as stated in the press release of 15 May 2018 still shows a deficit of Rs165.7 million on 14 June 2018.

The Reference prices used for the present exercise, that is the actual prices for March to May 2018 and the future prices for June to August 2018 are US$729.98 per M.Ton for Mogas representing an increase of US$36.04 per M.Ton (5.19%) and US$88.62 per barrel for Gas Oil representing an increase of US$4.68 per barrel(5.58%) compared to May 2018.

However, the budgetary measures taken by Government have enabled to reduce the retail price of Mogas by Rs2.35 per litre (4.52%) and that of Gas Oil, by Rs1.90 per litre (4.53%) in accordance with the Regulations. The new retail prices are effective as from 00.00 hr on Friday 15 June 2018.

The evolution of the FOB prices of Mogas and Gas Oil since 16 May 2018 are shown below:                                              

                                                         Graph 1 - Mogas                                                                                                                                         

                                           

                                                Graph 2 - Gasoil

                                                                                   


Based on the new Reference Prices and changes in the price structure, the retail prices of Mogas and Gas Oil are Rs49.65 per litre and Rs40.00 per litre respectively as shown below:

                         

Mogas

Gas Oil

Reference Price  - US$ per metric ton

729.9800

 -

Reference Price  - US$ per barrel

-

88.6200

CIF - US$/litre

0.5816

0.5798

Exchange rate – Rs/US$

34.6000

34.6000

 

                     Rupees per litre

CIF

20.1234

20.0611

Excise duty

14.8000

7.3000

Contribution to Road Development Authority

1.8500

1.7500

Contribution to Rodrigues transportation and storage

0.4100

0.4100

Contribution to the construction of storage facilities for petroleum products

0.1000

0.1000

Contribution to subsidy on LPG, Flour and Rice

1.7500

1.2000

STC’s operational expenses

0.3500

0.4000

Rounding of Figures

0.0265

0.0035

TRANSFER PRICE TO OIL COMPANIES

39.4099

31.2246

Oil Companies’ operational expenses and wholesale margin

1.9300

1.7600

VAT (15%)

6.4761

5.2174

WHOLESALE PRICE

47.8160

38.2020

Retail margin

1.8340

1.7980

RETAIL PRICE (Price at Petrol Service Station)

49.6500

40.0000

 

14 June 2018