1st December 2022

To the State Trading Corporation

Mauritius : Reduction in Mogas and Diesel

We, Linion Pep Morisien (LPM) urge you to make an accelerated legislation process to reduce the
price of petrol and diesel. To mitigate the impact of surge prices of petrol and diesel, We, Linion
Pep Morisien, are providing the Government of Mauritius with concrete proposals which will relief
the day-to-day activities of every citizen of the Republic of Mauritius, have a positive impact in the
economy of the Republic and a feel-good factor within the society.

We hereby propose as temporary measures:

1. A reduction in Excise duty of Rs 8 for Mogas and Rs 3 for Diesel.
2. A reduction of Rs 3 in the contribution to subsidy on LPG, Flour and Rice.
3. A reduction in the contribution to Road Development Authority of Rs 0.85 for Mogas and
Rs 0.75 for Diesel.
4. Exclude VAT (15%) on all existing contributions in the price structure mechanism.

Following these reductions, the new price for Mogas and Diesel will be Rs 59.5335 and Rs 45.8710
respectively as shown in Annex A.

1. Excise duty is an Indirect tax imposed by the government which allows them to raise their
revenue. For the period of July 2020 to June 2021, the Government acquired Rs 18.68 billion.
Excise duties on Mogas and Diesel contribute roughly around 14.2% of its whole amount,
that is Rs 2.65 billion. A reduction of Rs 8 on Mogas and Rs 3 on Diesel will cost the
government only Rs 1.73 billion but will give a sigh of relief to the whole nation.

2. As per the price structure mechanism provided by STC itself, contribution to Covid-19
solidarity fund of Rs 1 and contribution to finance cost of Covid-19 vaccines of Rs 2 were
both REVOKED. Unfortunately, STC added the Rs 3 to an existing contribution to subsidy on
LPG, Flour and Rice (Annex B). We, Linion Pep Morisien, strongly condemn this act and
qualify the STC as acting on mired bad faith towards the people of the Republic of Mauritius.

Linion Pep Morisien (LPM) – 50 Vishnu Kchetra st (ex-St Denis), Port-Louis, Mauritius. lpm@citizen.mu
 3. As per section 12(4) and 13 of VAT Act on value of taxable supplies and value of imported
goods, it clearly states that ‘’…a taxable supply is not the only matter to which a
consideration in money relates…’’ and sum of the value is listed. Hence, we, Linion Pep
Morisien, strongly disagree that VAT is calculated based on contributions made as well.
Furthermore, we, Linion Pep Morisien, look forward to challenge in court.

Also note that based on the market price of 30th November 2022, the price of brent crude oil
(USD/Bbl.) stands at $86.97 (Annex C). The price has continuously been decreasing which adds to
a more reasonable thesis on why the Government of Mauritius should reduce the price of Mogas
and Diesel.

One of the reasons why the Government of Mauritius is failing in its approach to stabilize the price
of Mogas and Diesel is because of its unreactive approach. In order to control the price, we need
to have a stable USD/Rs exchange rate which will also stabilize the CIF rate. In this case, we would
like to ask the STC, whether a Foreign Exchange account in USD has been set-up for all transactions
to foreign entities on Petroleum products. (Annex D).

We, Linion Pep Morisien, ask STC immediately and in all transparency to give the names of their 3
brokers, their local representatives and how much was paid to the brokers.

Annex A

Linion Pep Morisien (LPM) – 50 Vishnu Kchetra st (ex-St Denis), Port-Louis, Mauritius. lpm@citizen.mu
 Annex B

Annex C

Annex D

For LPM

Dev Rama José Neena Fadhil Hansraj Sharma

Sunnasy Valayden Moirt Ramdenee Mollabux Narain

Linion Pep Morisien (LPM) – 50 Vishnu Kchetra st (ex-St Denis), Port-Louis, Mauritius. lpm@citizen.mu