From May 1, the price of super unleaded fuel will increase by 5 cents and diesel by 1 cent. May 1, 2023 was also marked by a similar increase. The price of gas will remain stable thanks to the aid although it was expected to increase by 1.4% including tax.
Labor and Lily of the Valley Day will still be marked by an increase in fuel prices. An increase which registers “in an upward trend observed since the start of the year and which is mainly explained by strong Asian and American consumption, geopolitical tensions in Israel and Ukraine and by a desire of the organization of oil exporting countries not to increase the volumes produced,” depending on the prefecture.
As provided for by the regulations, the prefect sets monthly the maximum prices for the following petroleum products:
Unleaded premium fuel
Diesel
Liquefied petroleum gas
These maximum prices (all taxes included) are calculated in two stages:
First of all, the maximum prices excluding tax are established based on a calculation method mentioned in the regulations and objective data. They take into account the costs actually borne by companies and the return on capital or, where applicable, their commercial margin.
Then the maximum prices all taxes included are determined by adding to the prices excluding tax the amount of the various applicable taxes, in particular local indirect taxation, the rates and tariffs of which are determined by the Regional Council and whose revenue contributes to the financing of the region and of all municipalities.
Unlike France, the State does not collect either VAT or internal consumption tax on energy products (TICPE) on fuels consumed in Reunion.
The observatory of prices, margins and revenues was informed of the project to revise maximum prices, prior to their application.
