Motor gasoline is now R21.35 a litre |11 May 2023
The Seychelles Petroleum Company Limited (Seypec) has announced an increase of R0.44 per litre on motor gasoline to bring the price at the pump to R21.35 from R20.91.
This is the second increase in the price of motor gasoline in two months (April-May) since the decrease in the price of the commodity from R25.20 in June 2022 to R20.25 in March 2023.
The increase in price took effect on Monday.
Speaking to the press at the Seypec headquarters, Newport, chief executive Sarah Romain said the reason for the increase in price locally is a direct result of an increase in the price of the product on the international market for the month of April.
She added that the increase in price at the pump reflects only that of the supplier (Total Energies) given that the government tax of R8.50 and the company’s margin of R2.75 remains fixed.
She added that any increase in price is beyond the control of the company.
She stated that there are many factors that are affecting fuel prices globally among which include Russia’s war on Ukraine which caused a shortage and spike in prices, the Republic of China, a big oil consumer, which after having recovered from the Covid-19 has increased its demand for the product resulting also in a reduction in supply on the international market and the Organisation of the Petroleum Exporting Countries (Opec) which met in April and pronounced a cut in oil production.
She noted that a decrease or an increase in the price of motor gasoline at the pump depends entirely on the price paid by the company on a monthly consignment.
“The cargo that we are using right now will last us for approximately a month. In June when we take a new cargo, this will be based on May prices and if May prices on the international market are lower, we will then be able to see a reduction in the price in June. However if that is maintained as now or there is an increase in the international price, then this will be reflected at the pump,” Mrs Romain said.
She noted that Opec, made up of 13 oil exporting countries with a huge influence on the oil production globally given that they represent 77% of the global oil reserves and control 44% of the global oil production, will be meeting again in June and if their strategy is to maintain the cut in supply, the market for oil will be tighter which would mean a hike in prices.
Mrs Romain said that compared to countries in the region, our price is still the cheapest apart from Madagascar where the price of motor gasoline, after heavily subsidised by government, stands at R19.85 per litre. The price of motor gasoline in Mauritius is R23.35 per litre, in Reunion the price is R27.06 per litre while in Mayotte, the price is R28.64 per litre.
She noted that the price of motor gasoline that has been on the decrease at the pump from R25.20 in June 2022 to R20.25 in March 2023 was followed by an increase of only R0.66 in April 2023 and now R0.44 this month which is beyond Seypec’s control.
Text & photos by Patrick Joubert
