As of 21 December, the price at the pump for fuel is SCR19.78. Between June and November, Seypec relied on its own revenue from its activities in bunkering foreign vessels in Victoria and its tanker operations worldwide, subsidising actual cost to maintain a fairer price despite growing global gas prices. Nevertheless, it costs nearly SCR3 more for fuel than in a pre-COVID time, now, Seypec says that this measure is inadequate to sustain fuel purchases on a long term basis and Seypec must imperatively turn to the local market for its forex as it is no longer sustainable for the company to finance its own forex needs.
Motorists will have noticed an increase in the price in fuel at the pump lately. Seypec confirms that a big factor affecting the increase in fuel prices is the US$ exchange rate; the cost of the dollar has jumped from approximately SCR18.11 in September to approximately SCR21.65 in December.
Mogas (motor gas)’s continuous rise is more pervasive since 25 May when the price at the pump was SCR14.96 per litre compared to December, where the price per litre has reached SCR19.78 per litre. A spike in prices was also felt in November. The Seychelles Times asked Sarah Romain, General Manager (GM) Commercial at Seypec, about global oil prices dynamics and she stated that there has been an increase in the global prices of motor gasoline since April. Romain detailed, “When forex was becoming scarce in July, Seypec stated that it would be using its US$ proceeds from its activities in bunkering foreign vessels in Victoria and its tanker operations worldwide to support its fuel purchases. As such, Seypec did not buy any US$ on the local market between June and November.
This has enabled a lower price of fuel during that period as the company did not have to purchase any forex from banks locally at a higher rate. Seypec managed to refrain from doing so by managing its own foreign earnings which eased the pres sure on the national forex reserves.” Seypec notes that the revenue in US$ from tanker activities and bunkering is “[…] inadequate to sustain fuel purchases on a long term basis and Seypec must imperatively turn to the local market for its forex as it is no longer sustainable for the company to finance its own forex needs.” Cargo priced for the week beginning 16 November was at a significantly higher rate (SCR 20.64), reports Seypec, and explains the 87 cent increase at the pumps that week.
Similarly, in December, cargo purchases were even higher, SCR21.65 per litre. Seypec’s Commercial GM says, “Had the rate of exchange remained at SCR14.23, (pre-COVID rate), the current retail price would have been SCR16.88 per litre, meaning a SCR2.90 per litre difference just because of the devaluation of the SCR to the US$.” Despite a rise in fuel at the pumps, Seychellois can still find themselves somewhat lucky this Christmas as in the region, we still boast the most competitive fuel prices, according to Seypec. As of 21 December, Seychelles’ price of Mogas is SCR19.78 per Litre.
This is already 20% cheaper than the next cheapest in the region, Madagascar, with SCR23.82 per Liter. The most expensive Mogas price regionally is in Mayotte with SCR36.58 per Litre, nearly 85% more expensive than Seychelles.