How much will fuel cost ?

The price of petrol has increased from Rs 34.10/litre January 6, 2009 to reach Rs 48.50/litre early this year, representing an increase of 16%. During this period, the price has fluctuated several times, accusing increases (Rs 46.65 in April 2010), but also downward revisions (Rs 42.65 in September 2010). Meanwhile, the price of diesel has gained the upper hand, moving from Rs 32.65/litre in January last year to finally show up at Rs 39.90/litre, registering an increase of 13%.

Locally, there could be, for the first time that the price of gasoline surpasses Rs 50 per liter. The Petroleum Pricing Committee (PPC) - professional body that calculates data based on the evolution of oil prices at regular intervals - is faced with a daunting decision. 

After the increase implemented in January at its inaugural meeting, the PPC has, logically, maintained the status quo at its second working session on Monday. However, the data may change drastically in late March after the exhaustion of the cargo of December and January. The acquisition of new stocks at high prices due to political instability in Egypt suggests a further increase fuel prices by the first week of April. 

At the State Trading Corporation, one admits that the situation does not look easy. ''The trend clearly shows that the price of oil continues to take the elevator on the international market. In this configuration, we have no choice but to revise our prices locally,''pointed out a senior officer of TCC expressing concern about the conflict situation in the oil exporting countries. The demonstrations in Iran are addressed crude above $ 100.Earlier this week, it was closer to $ 104. The Mangalore Refinery Ltd. of India, distributor of oil in Mauritius imports a little over 60% of its products to Iran. A surge of violence in the Arab world, including Libya and Bahrain, may not only increase the price of oil, but could also compromise the distribution.