The current system for the evaluation of fuel prices will be reviewed to ensure transparency is maintained.
The Petroleum Pricing Committee (PPC), the body responsible to determine the price of fuel, might soon go through certain changes. The new elements to be added to the new system will be made known by next week, as reported by l’Express.mu.
A technical committee has been set up to bring about the changes.
While the greater part of the new system remains unknown to the public, l’Express.mu says that one of its aspects will involve the manner in which any fluctuation in the price of fuel (increase or decrease) impacts on the consumers.
As per the regulations of the PPC, a rise or a decrease is only applied when the percentage of increase or decrease between the calculated price and the current retail price falls between 4 % to 10 %. If the difference in price goes beyond 10 %, the change in retail price is restricted to 10 %. The PPC calculates the average of fuel price based on the price of the last six months and a forecast for the next 6 months. Furthermore, any tax applied to the initial price of imported fuel is also taken into consideration.
The new system might bring a decrease in the prices on the local market.