Fuel prices: unleaded down (- 4 cents), diesel (+ 5 cents) and petrol up (+ €1.03)

Starting this Sunday, May 1st, 2022, fuel and gas prices will change again. Unleaded will be reduced by 4 cents, while diesel and petrol will each increase by 5 cents for the former and €1.03 for the latter.

Maximum selling price of hydrocarbons in Reunion

From May 1, 2022:

Oil and gas products in La Réunion are priced according to the provisions of the Energy Code.
The resulting fuel price regulation mechanism makes it possible to comply with real market conditions and ensure transparency on the formation of hydrocarbon prices.

As in the previous month, the state is granting a special subsidy of 15 cents per liter on fuel. This subsidy will be deducted from the prices below.

In April, global fuel prices fell for premium fuel (-5%) and rose for diesel (+5%).
This difference in the development of the two quotations can be explained by the global economic recovery, which is boosting demand for diesel (a fuel mainly used by business and industry).

On the gas side, the monthly price for butane also saw an increase to $960/MT (ie +4%), as did propane ($940/MT, ie +5%).

The euro weakened slightly against the dollar, the average of parities over 15 working days was $1.0885 for €1 (-1%) for fuel and gas.
This fall in the euro alone leads to an increase in fuel prices of almost 1 cent and for gas by 47 cents.

The drop in fuel freight (-8%) has no noticeable impact on fuel prices. In the case of gas, the freight has risen sharply (+28%), resulting in a price increase of 42 cents per bottle.

The transit fees set by prefectural decree, such as the wholesale and retail margins, remain unchanged.

Environmental taxes (EEC) on road fuels have decreased slightly (-2%) and have no impact on the final consumer price of these products.

It follows as follows:

– For lead-free

The list price is €1.68/litre (-4 cents compared to the previous month). This variation is mainly explained by the fall in the average quotation (about -5 cents on the final price), mitigated by the fall in the euro-dollar parity (+ 1 cents).
The other parameters do not have a noticeable impact on the final price.

– For diesel

The sales price here is again up to €1.41/litre (+ 5 cts) due to the price increase (+ around 4 cts at the end) and the lower parity.

As for premium fuel, the development of other parameters does not noticeably affect the final price.

– For natural gas

The final price of the bottle is up to €23.99 (+€1.03).
This is mainly due to the upward trend in prices (+4% cumulative), reinforced by the weakening of the euro (-1%) against the dollar. Quotations “weigh” almost 15 cts premium on the final price, plus about 47 cts premium for the fluctuation of the euro.

Patrick Riviere.

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