Following measures taken by Government to reduce Excise Duty on Mogas and Gas Oil, as announced in the Budget speech 2019-2020, the Petroleum Pricing Committee (PPC) met on Monday 10 June 2019 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(2):

Product       

Retail Price
Rs / Litre

Mogas

44.00

Gas Oil

35.00

The retail prices of Mogas and Gas Oil effective as from 12 January 2019 were Rs47.00 and Rs38.00 per litre respectively. The Reference prices used at that time were US$554.68 per M.Ton for Mogas and US$76.63 per barrel  for Gas Oil.

The committee took note of the status of the Price Stabilisation Account (PSA) which has a positive balance of Rs574.9 million as at 10 June 2019.

The Reference prices used for the present exercise, that is the actual prices for March to May 2019 and the future prices for June to August 2019 are US$658.31 per M.Ton for Mogas representing an increase of US$103.63 per M.Ton (18.68%) and US$80.45  per barrel for Gas Oil representing an increase of US$3.82 per barrel (4.98%) compared to January 2019.

However, the budgetary measures taken by Government to reduce excise duty on Mogas and Gas Oil have enabled to reduce the retail prices of both Mogas and Gas Oil by Rs3.00 per litre.  The retail price of Mogas has been reduced by 6.38% and that of Gas Oil, by 7.89% in accordance with the Regulations. The new retail prices are effective as from 00.00 hr on Tuesday 11 June 2019.The evolution of the FOB prices of Mogas and Gas Oil since January 2019 are shown below:                                           

                                                         Graph 1 - Mogas                                                                                                                                         

                                                

                                                Graph 2 - Gas Oil

                                                                                          

Based on the new Reference Prices and changes in the price structure, the retail prices of Mogas and Gas Oil are Rs44.00 per litre and Rs35.00 per litre respectively as shown below:

                         

Mogas

Gas Oil

Reference Price  - US$ per metric ton

658.3100

 -

Reference Price  - US$ per barrel

-

80.4500

CIF - US$/litre

0.5291

0.5299

Exchange rate – Rs/US$

36.0000

36.0000

 

                     Rupees per litre

CIF

19.0476

19.0764

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

3.0000

1.2000

STC’s operational expenses

0.3500

0.4000

Fund from Price Stabilisation Account

(3.3007)

(1.4496)

TRANSFER PRICE TO OIL COMPANIES

34.2069

26.5868

Oil Companies’ operational expenses and wholesale margin

2.1500

1.9800

VAT (15%)

5.7391

4.5652

WHOLESALE PRICE

42.0960

33.1320

Retail margin

1.9040

1.8680

RETAIL PRICE (Price at Petrol Service Station)

44.0000

35.0000

 

10 June 2019