Bhim Sunnassee: "The Impact of Fuel Price Decrease on Purchasing Power is Very Limited"
Bhim Sunnassee: "The Impact of Fuel Price Decrease on Purchasing Power is Very Limited"
Christina Vilbrin
Tue, 04/11/2025 - 1:30 PM
The price of petrol has decreased by Rs 2.75 while the price of diesel remains unchanged. What is your initial reaction?
It’s a good thing that the price has dropped. It’s a step in the right direction, even though it’s not enough. For over a year, fuel prices have been declining. The government has benefited considerably from this, considering the prices at which they were purchasing before compared to today. We expected at least a Rs 5 reduction in petrol.
Additionally, according to the agreement between petrol station managers and the government, margins need to be adjusted annually based on the consumer price index, which reflects the cost of living. However, this year, despite the increase in our operational costs, the managers have yet to receive compensation. We have sent a letter to the Minister of Commerce and plan to resend it. We are not asking for more or less than for the agreement between the managers and the government to be respected.
Some believe that this decrease is marginal given the drop in international prices. What are your thoughts?
It is indeed a very marginal decrease, especially when compared to the international decline in fuel prices.
Do you think this decrease will have a real impact on consumers' purchasing power?
Very little, frankly. A drop of Rs 2.75 is not going to relieve households or create any significant savings. We are still far from the promised reduction of Rs 20 per liter. Hence, the impact on purchasing power remains very limited.
Several voices are calling for a review of the pricing mechanism of the Petroleum Pricing Committee. Do you share this view and what do you recommend?
Yes, I completely agree with this view. The government promised changes to the structure of the Petroleum Pricing Committee, but we are still waiting. To this day, there is no director at the STC. Is there really no Mauritian qualified for this position? It’s incomprehensible. We need to issue a call for applications, appoint someone, and reassess the entire operation of the PPC. It’s time to restart the process from scratch, considering all factors.