D-6. Monday 3rd April could mean the beginning of more worries for drivers. As the Automatic Price Mechanism (APM) is meeting on 2nd April, the cost of fuel is likely to increase as from the next day. The rise could be up to 20% – the maximum increase authorised by the APM.

The rising price of petrol on the world market and the depreciation of the rupee may force the State Trading Corporation (STC) to review its prices upwards. If the increase is implemented, the petrol price could go from Rs 34.80 to Rs 41.76 and diesel from Rs 23.75 to Rs 28.5 per litre.

By trying to protect Mauritian consumers in the past the STC had avoided drastic increases. However such an attitude is no longer possible. “In January, the litre of diesel should have increased by 57% to reach Rs 31 to reflect the reality of petrol prices on the world market. But the price was increased by 20% only. This now has to be adjusted. This is why we have to expect a 20% rise in the price of diesel at the beginning of April,” reveals a specialist.

And, even though the price of petrol increased by 20% in January, this was not enough – it explains why another 20% rise is necessary. This aims at reducing the losses of up to several millions of rupees everyday that the STC is suffering. This inevitable rise could however cause much hardship to all consumers as it could affect many industries.