During the Private Notice Question (PNQ) held on Tuesday 15 April 2025, questions regarding the estimated exceptional gains expected to be realized by the State Trading Corporation (STC) over the next four months were made by the Leader of the Opposition, Joe Lesjongard. This inquiry followed the decision made by the Petroleum Pricing Committee (PPC) to maintain fuel prices on Friday 11 April 2025.
In reply to the Leader of the Opposition, insights into the financial situation of the STC were provided by The Minister of Commerce and Consumer Protection, Michaël Sik Yuen. It was stated that a significant deterioration in financial health had been observed as of April 2025 compared to June 2024. The STC was compelled to borrow foreign currency on international markets to finance imports amounting to approximately Rs 4 billion annually. Currently, a deficit of Rs 2.8 billion is being faced by the Price Stabilisation Account (PSA).
The narrowing gap between the calculated price and the retail selling price of fuel was highlighted by Minister Sik Yuen. It was revealed that a windfall gain of Rs 108 million from petrol and Rs 459 million from diesel is anticipated by the STC for the four-month period ending 31 July 2025, totaling Rs 567 million. However, it was noted that these surplus funds would not be reflected in the STC’s balance sheet; instead, they would be deposited into the PSA to offset past subsidies that maintained fuel prices at reasonable levels, serving as a reserve for any potential price increases.
Sik Yuen pointed out that a deficit of Rs 5.2 billion was recorded in the PSA in September 2023, followed by Rs 4.2 billion in June 2024 and Rs 2.8 billion as of 8 April 2025. It was detailed that while a surplus of Rs 300 million was indicated for the petrol account, a significant deficit of Rs 3.1 billion was reflected for the diesel account.
Moreover, it was disclosed that foreign currency loans totaling Rs 8.1 billion have been incurred by the STC to meet its import obligations due to a shortage of local currency. The crucial need to retain excess funds to navigate difficult financial periods and stabilize prices was emphasized.
Following this, a sharp critique of the outgoing government’s financial policies was articulated. It was noted that public debt has surged to Rs 644 billion, representing 90.4% of the GDP. Caution was expressed regarding the potential downgrade of the country’s sovereign credit rating by Moody’s.
In closing remarks, many questions asked by Lesjongard were turned back on him by the minister, with an emphasis on the inability to fulfill the promise of lowered fuel prices due to the unfavorable economic realities faced by the country. A pointed response was given when Deputy Adrien Duval questioned why the government had not eliminated VAT on fuel-related taxes: “Why didn’t the previous government do it?”
This exchange highlights the ongoing challenges being faced in managing the economic landscape of Mauritius, particularly concerning fuel pricing and public finance. As these complex issues are navigated, the potential impacts on consumers and overall economic stability remain a significant concern.