The Petroleum Pricing Committee (PPC) met on Friday 2 April 2021 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 price of Mogas be increased and that of Gas Oil be maintained at its present level as shown below as per Regulation 5(3)(b) and 5(1)(d):

 Product       

Retail Price
Rs / Litre

 Mogas

48.40

 Gas Oil

35.00



The Committee took note of the evolution of world prices of Mogas and Gas Oil, which have been on an upward trend since the past months as well as the status of the Price Stabilisation Account (PSA). It is also to be noted that the last revision in the retail prices of Mogas and Gas Oil was carried on 11 June 2019, whereby both prices were decreased to Rs44.00 per litre and Rs35.00 per litre respectively. At the PPC meeting of 4 December 2020, based on the Reference Price of US$400.25/metric ton for Mogas and US$48.30/barrel for Gas Oil and an exchange rate of Rs40.40/US$, the retail price for both products were kept unchanged. According to Section 7(4)(a) of the Regulations, the Committee should meet at least once every 4 months.

Mogas (L’Essence) - For the present exercise, based on the new Reference Price of US$616.76 per metric ton for Mogas, that is, the actual prices for January  to March 2021 and the future prices for April  to June 2021 at an exchange rate of Rs40.90/US$, the retail price of Mogas should have been increased by Rs8.35 per litre or by 18.98%. However, as provided under Regulation 5(3)(b), the retail price of Mogas has been increased by a maximum of 10%. The new retail price is effective as from 00.00 hr on Saturday 3 April 2021.

Gas Oil (Diesel) - With regard to Gas Oil, the new Reference Price of US$67.57 per barrel, that is the actual prices for January to March 2021 and the future prices for April to June 2021 and an exchange rate of Rs40.90/US$ shows an increase in the retail price by Rs5.85/litre or by 16.71%.  However, as there is a positive balance in the PSA for Gas Oil,  as provided under Regulation 5(1)(d), its retail price has been maintained at its current level.

The evolution of the world prices of Mogas and Gas Oil since January 2020 to 31 March 2021 is shown in the graphs below.
 

                        Graph 1 - Mogas

                     

                        Graph 2 - Gas Oil

                   

Based on the new Reference Prices, the retail price of Mogas (L’Essence) is increased to Rs48.40 per litre, effective as from 00.00 hr on Saturday 3 April 2021. The retail price of Gas Oil (Diesel) is maintained at Rs35.00 per litre. The new Price Structures are as follows:

                         

Mogas

Gas Oil

Reference Price  - US$ per metric ton

616.7600

 -

Reference Price  - US$ per barrel

-

67.5700

CIF - US$/litre

0.4996

0.4475

Exchange rate – Rs/US$

40.9000

40.9000

 

                     Rupees per litre

CIF

20.4336

18.3028

Excise duty

12.2000

4.7000

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

0.6500

0.5000

Contribution to Subsidy on LPG, Flour and Rice

4.2000

4.2000

Contribution to the COVID-19 Solidarity Fund

1.0000

1.0000

STC’s Operational Expenses

0.3500

0.4000

Fund from Price Stabilisation Account

-

(5.0780)

Adjustment

(3.4266)

-

TRANSFER PRICE TO OIL COMPANIES

37.6670

26.1848

Oil Companies’ Operational Expenses and Wholesale Margin

2.3500

2.1800

VAT (15%)

6.3130

4.5652

WHOLESALE PRICE

46.3300

32.9300

Retail Margin

2.0700

2.0700

RETAIL PRICE (Price at Petrol Service Station)

48.4000

35.0000

 

02 April 2021