Monday, May 31, 2010

Pump Prices Remain At Unreal Levels


Almost two years after they collapsed on world markets. The green line represents the evolution of IPE Brent oil after adjusting for the MUR/USD exchange rate while the red one charts local pump prices complimentary of early harvest and bumper crop.

And that's supposed to:

1. have made us more resilient during the financial crisis? 
2. be an external shock?

Beats me!

25 comments:

Anonymous said...

We ask ourselves what's the use of the APM and all the monthly fuss?

Kozémotandé said...

It is unbelievable that such things should be allowed to happen in a country with little resources. We remeber the PM once said in parliament that those who carried out the famous hedging will be held accountable. No one has been held accountable so far. The same people at the helm of STC and the APM carries on with its monthly show. There is no accountability but the poor people must continue to foot the bill.

akagugo said...

On dit merci qui?
Merci Rama!

Allez Pravind, get your mini-budget in and erase all the messy deeds of your predecessor. But prepare to open an ossuary for accomodating all the skeletons in the closet he left behind...

Anonymous said...

pas capave print ca graph la et montrer ca ramgoolam et dire li donne un explication?????????

Li peur question difficile? ca si evoye li lor bbc hardtalk li pou paniker ca

Anonymous said...

Ask yourself why Navin Ramgoolam prefers a Sithanen and a Ti-Jugnauth to Sanjay Jagatsing ! Paul osi ena sa complex la. Zotte bizen entour zotte tou le temps avek dimoune ki pli kuyon ki zotte !!!

Sanjay Jagatsingh said...

@Anonymous: wi bizin petet apel sa asymmetric pricing mechanism.

@Kozemotande: mo ena ban doute ki hedging ine fer STC perdi Rs3 milyar. En fet STC pena pu fer hedging parski li pass nu tu bann ogmentasyon prix petrole donk c plitot spekilasyon kinn deroule laba (mais mo pa exklir possibilite ki c ene sibterfiz pu makiye ban sifs defisit bidzeter).

Si vremem ine perdi sa kantite kas la sirman p sirman esper ene lot mega-katastrof pu konfer kiken dot tit GCSK. Esperon ki Suren Dayal pu ran li itil dan parleman ek diman ene FFC lor la.

Pa blier chek sa ban post la oussi
reset pu touye nu lekonomi

pena pli malin ki nu

sukriya ramaji!

@Akagugo: bizin effektivman fer ene mini-bidze tudswit pu elimin ban travers de Shaitanomics.

Anonymous said...

I've read these three posts, they're excellent. You have coined an excellent term Sanjay : 'asymmetric pricing mechanism'.
Personally, I don't see them changing anything in the 5 years to come. Vir ki tourne, tourne ki vir...

Anonymous said...

voleurs ca banne la. last week mo ti a cape town et mo capave dire zot ki en general grocery prices pli abordable ki moris.

moris p faire champion dans infaltion et dans augment prix!

Vikramg said...

Well, the government has given out free transport to students. How did they manage to get this extra money? This money is not even talked about in the budget.

Its obvious that the money comes from the APM system. Anyway, STC plays a very good game with the price of petrol. The exact mechanism for the price fixing has not been revealed to the public.

What they do, is to fluctuate the price irrespective of the world market price, to please people/the government.

Did anyone remember that the APM meeting was delayed because of election a few years back?

Anonymous said...

ala resulta un mauvais oppposition dans parlement. ki faire ca pas ti capave servit pou debatre dans elctoral campaign? mauricien prefer ecoute joke imbecile de ramgoolam et berenger, vrai issues la pas discuter meme.

akagugo said...

Zordi gramatin, nou tann enn nouvo concept pou essaye justifier l'inexplicable, courtesy of Mr Ranjit Singh Soomarooah: "WINDFALL LOSS..."

Alorss, dans equation ki STC servi pou fixer prix petroleum products, asterr bizin ajoute enn paramett ki prend compte bann "Windfall Losses" précédent. Lorla, ajoute bann anciens paramett farfelue couma timing election générales et partielles (hein, VikramG :-)), vente record diesel, marge profit ki'nn perdi parski sipaki, baisse la-vente l'essence dans précédent exercice ki pas ti capav metter parski ti déjà fini passe augmentation maximum ki de 20% mais ki'nnn baisser par la suite pou vinn sipaki blablabla enkor...
Mr Soomarooah qualifies for the award of the most creative argumentation of the decade!

Missié Chellum inn (ré)dire couma STC apé kokin nou lor sak litre fuel ki vander, mais saki pli dérange li c'est silence assourdissant du public mauricien. Bein inn lerr pou invite-li vinn lire bann blogs inpé pou encourage li...

Anonymous said...

ramgoolam et berenger pas finne acheter un sou petrol depuis dieu sait combien le temps. la plupart parlementaire pas paye petrol.

they just dont care, we are the mortals!

Vikramg said...

Read this online:
"Ranjitsinsh Soomarooah a laissé entendre que prochainement la STC donnera des explications sur la balance du ‘hedging’. Il a déclaré que des prêts
ont été contractés auprès des banques pour gérer ce problème. A noter qu’une somme de Rs 3 est perçue sur chaque litre d’essence et du diesel pour amortir les frais du hedging."

And all this while we were being told that there were no hedging by STC. So they are finally admitting that people are paying for their incompetencies!

@Akagugo: That guy above also said that the price of petrol also depends the amount of petrol a tanker can carry!

Unfortunately, they will still not reveal all the parameters in computing the price!

[source:http://www.lematinal.com/economie/4743-Lessence-a-Rs-4315-soit-Rs-350-de-moins.html]

akagugo said...

@SJ
Sir, a humble rquest: I would be most obliged if could you please edit my comment of June 3, 2010 10:04 AM which I intended to end like this "...pou encourage li contigne manger et faire so travail."

Sanjay Jagatsingh said...

Anonymous #5: Effektivman CPT ban pri grocery vreman plis abordab.

Vikramg: b transport gratis c nu kass mem sa. En fet o vi ban gaspiyaz ki gayner ladan, kav dir p zet nu larzan par lafnet (ou bien a traver lafnet ban bis ki dormi dan garaz sertin ban proprieter la?). Ala ene lot paralel.

STC ti admet depi a c lontan ki li perdi 3 milyar dan hedging: Gowressoo ti vine dire dan parleman ki sori me nu pu bizin paye sa.

Anonymous #6: wi, loppozisyon ine dormi pendan 5 banane. Mo diman mwa si pa ti bizin diman zot vers zot saler a kozelidir? Nu pena lobzeksyon si zot oule fer li retroaktivman. ;-)

Akagugo: lol! mo pense ti bizin fer leader parti malin resit ou kommenter. Btw, ala regilasyon modifie pu APM. Check sirtu paragraf 5. Ene kommisyon denket/FFC ti bizin kumans par samem.

Sinon, pa kav modifie ene komment. Nu kav donk konsider ou dernier komment la kuma ene adendum.

Ek mone avoye sa post la Jayen Chellum (ACIM) ek Mosadeq Sahebdin (ICP).

Seolid said...

Google ena plis ki 100 facteurs li prend en consideration dans so search algorithm. Mais mo croire STC sa meme mari Google sa. Sa equation STC la mari complexe sa !!!

Anonymous said...

Ene equation, kuma Sanjay dir, ki fine inventer pou kokin nou kas ek zette li par lafnet bane bis ki pe dormi dan garaz...

Kozémotandé said...

Seolid comments has summarised it beautifully. I am not sure the STC could itself put the formula in a plain language. But they dead sure know what they are doing with the people's money.

Vikramg said...

Recent comments from Mr Soomarooah:
"Nous nous sommes donc retrouvés avec un stock conséquent et la STC a dû rembourser Rs 42, 9 millions aux compagnies pétrolières et station-service»

It seems that all their mismanagment/bad decisions are passed to the people. I wonder what their job actually entails then. I wont mind taking his place.

@akagugo: Another factor to be included now is Mr Soomarooah competency as STC director ;-)

akagugo said...

More than 15 months after this was posted, pump prices have not changed that much. Reasons why here.

Apparently oblivious to the fact that in many countries prices are actually revised every day/week/fortnight/month, our dear Cader explains the rigidity of the pricing with unbelievable candour: « Nou pa kapav sanz pri tou le zour »

Si sa pa capav, couma pou capav sanz lezot zaferr pli simpl ?

Sanjay Jagatsingh said...

Pump prices are not the only ones to be disconnected from their international levels.

But don't worry we can always open a few more sub-par casinos everywhere and we'll get more 'grot'.

akagugo said...

So, the barrel could fetch at 20 USD in the future... And we're still paying for unreal prices. And given the way the APM formula works, we're almost certain that the hedging losses will be absorbed quicker than anticipated. At least, that's the only rational explanation that we can think of in justification of this government's persistence in using the same formula.

Sanjay Jagatsingh said...

Pa pe bes pri lesans parski zame finn gagn robust grot ki ti bizin pu zistifye flat tax. Ler pri lesans ti kolaps an 2008 ti sispan APM parski sinon guvernman ti pwena enn tro bel mank a gayne an term VAT. Pa truv sa bizar ki zis ler ti bizin mari bes pri lesans an 2008 dokter 40% + 40% = 80% ti finn dir nu ki finn fer enn gro pert hedging (alor ki STC ek so APM pena oil risk). La pri lesans pe re-efondre ankor, dapre u kifer zot pe tchombo pri la kot liete?

Kav relir sa pu konpran big picture.

Sanjay Jagatsingh said...

Rajiv Servansingh pe rann li ridikil ek bann deklarasyon kuma: "Rama Sithanen avait proposé, à un certain moment, de passer toute la baisse sur les prix des carburants au consommateur pour relancer l’économie à travers la consommation."

Kuma dir grafik laola pa fer nu rapel ki kan spesyalis-ki-pa-spesyalis ti an mezir dispoze ant 2005-2010 ki li ti fer.

Eh, pa fer riye doh.

Sanjay Jagatsingh said...

Ramgoolam not happy with increase in oil prices. Well who was PM when a disconnect between world prices and what we pay for them here was forced upon customers?