Fuel prices in Reunion Island continue the decline that began last month and are experiencing a significant drop. – which is very good news. The average oil price has reached a level most seen since 2022, the global supply being much greater than what had been envisaged, demand weakening after the summer period, and transactions being driven by a weakening of the dollar. Thus, on October 1, 2024, unleaded prices will drop by 6 cents and diesel by 7 cents (Photo: www.imazpress.com)
The monthly change observed is linked to the following factors:
– Prices which are down 7.70% for unleaded and 9.59% for diesel. These drops impact the final prices by -5 and -6 cents;
– The parity is evolving favorably for the Euro and stands at 1.0974 euros for 1 dollar and contributes 1 cent to price reductions;
– Regarding gas, the prices of propane and butane are once again increasing (+4.39% and +2.54%). Without the aid which stabilizes the price of the gas bottle at €15, the price would be €20.14.
Price changes since January 1, 2022:
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 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.
News from Reunion Island, Fuels
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