Africa-Press – Mauritius. The Minister of Commerce and Consumer Protection, Dr Dorine Chukowry, , brought further clarifications and details on the Price Stabilisation Account (PSA) and the agreement entered with the Mercantile and Maritime Group, following the Private Notice Question as regards the supply of gasoline and diesel, during a press conference, this evening, at the seat of her Ministry in Ebène
Dr Chukowry spoke about the role of the PSA and stated that any surplus/deficit in respect of every tanker is transferred to the PSA. She further indicated that windfall gain arising out of an increase in the retail price as well as windfall loss arising out of a decrease in the retail price, are dealt with in the PSA.
She added that the PSA aims to absorb the cost and stabilise the price of petroleum products. Dr Chukowry further indicated that Mauritius receives a shipment of petroleum products every 20 days adding that Government cannot change the price of petroleum products every 20 days since it will destabilise the consumers and the economy.
She recalled that the PSA, which exists since several years, has a deficit of more than Rs 5 billion. She insisted that it is a deficit and not a tax and recalled that this amount has not been passed on to the consumers.
As regards the price of diesel, the Minister highlighted that it was once sold at Rs 80 per litre and that Government maintained its price at Rs 54,55 per litre. Similarly, the price of fuel which was supposed to be sold at Rs 87 per litre was sold at Rs 74,10 per litre, she added.
Speaking about the contract agreement with Mercantile and Maritime Investment Private Ltd, she indicated that it is to the tune of Rs 2,6 billion and not Rs 16 billion.
She also spoke about the call for tender that the State Trading Corporation (STC) launched as regards the insurance, freight, transport and other logistics needed for the transportation of the petroleum products till the port. She indicated that these services are called as “Premium”.
As regards the purchase of petroleum products, Minister Chukowry stated that notwithstanding the supplier who would be awarded the contract, the STC would have paid the prevailing price on the international market at embarkation.
This is known as the Platts Price, she informed. She pointed out that this system exists since many years. Dr Chukowry also underlined that the fuel that Mauritius is purchasing is as per the specifications and conditions of the call for tender documents for petroleum products that the STC had launched.
She said that the STC has accepted the offer of the Mercantile and Maritime Group since it has given STC other advantages. She mentioned that Government is paying for the petroleum products in Mauritian rupees.
Another advantage, she said, is that with the new contract, the Government gets 60 days to pay for the petroleum products after disembarkation of the products.
With the other suppliers, Government had to pay for the products on the 30th day as from the embarkation of the products, she indicated. This, she said, creates a big difference in the cash flow of the STC which enables Government to save some Rs 250 million a year.
Furthermore, she recalled that Government has made a profit of Rs 700 million as compared to if they had awarded the contract to the lowest bidder. Speaking about subsidies, the Minister observed that through the contribution of Rs 7, Government collects some Rs 3,6 billion.
She indicated however that more than Rs 4 billion per year are used to maintain the price of gas, rice, and flour at a reasonable rate for the population.
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