The price of fuel will increase slightly on January 1, 2025. Unleaded increases to 1.64 euros/liter, an increase of 2 cents, diesel to 1.27 euros/liter and therefore increases by 1 cent, while the gas bottle rises to 18 euros after the removal of the Department's subsidy. We publish the press release below (Illustrative photo www.imazpress.com)
Oil prices varied very little in December (+0.43% for unleaded and -0.89% for diesel) but the parity, still against the euro (-1.66%), has impacted global trade and has a negative impact on prices at the pump.
Looking ahead to 2025, the market is pricing in an increased likelihood of supply disruption, continued geopolitical risk, and an appreciating dollar.
Thus, as of January 1, 2025, the maximum prices applicable to Reunion Island are as follows:
The monthly variation is explained by the following factors:
• For unleaded products, prices are up very slightly by 0.43%, with no perceptible impact on the final price at the pump. The appreciation of the dollar causes an increase of 1 cent in the final consumer price;
• For diesel, prices have seen a very slight increase (+0.89%), perceptible at around 1 cent for the end consumer. However, the parity evolves unfavorably for the euro (- 1.66%) and cancels out the fall in prices;
• Freight consists of a single boat, with an increasing cost (transport and updating of demurrage);
• Port duties are increasing for the year 2025 (+ approximately 5%). The combination of increases in freight and port dues results in an increase in the final price of fuel of around 1 cent;
• Regarding gas, the prices of propane and butane are strictly identical to those of last month. The price of the bottle is very strongly impacted by the euro-dollar parity, freight and shipping duties. In addition, the end of the aid allocated by the Department increases the price of the bottle by €3. Without the help of the Region which stabilizes the price of the gas bottle at €18, the latter would be at €21.13, a level that it had not reached for more than a year and a half.
As provided for by the regulations, the prefect sets monthly the maximum prices for the following petroleum products:
• Unleaded premium fuel
• Gazole
• 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 revenues contribute to the financing of the region and all municipalities. Unlike France, the State does not collect 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.
