Where does the money go when I buy 1 litre of fuel in Mauritius?

Recently I came across a communique of the State Trading Coporation in L’express the 04.02.2016 which published the break down of what you are paying for when you buy 1 litre of Gasoil and Diesel. Those figures below will only be valid until the Petroleum Pricing Committee (PPC) and the State Trading Coporation agree to new prices (monthly basis according to here: Petroleum Pricing Systems (PPS)). I’m presenting the figures below out of interest to get an idea how the state invests the money collected on fuel.

State Trading Corporation
03.02.2016

Description Mogas (Gasoline) Gas Oil (Diesel)
Reference Price – US$ per metric ton 412.0900  
Reference Price – US$ per barrel   41.7600
CIF – US$ / litre 0.3480 0.3129
Exchange rate – Rs/US$ 36.6500 36.6500
  Rupees per litre
CIF 12.7542 11.4678
Excise Duty 10.8000 3.3000
Maurice Ile Durable levy 0.3000 0.3000
Contribution to Road Development Authority 1.8500 1.7500
Contribution to Rodrigues transportation and storage 0.4100 0.4100
Contribution to Build Mauritius Fund 4.0000 4.0000
Contribution to the construction of storage facilities for petroleum products 0.1000 0.1000
Contribution to subsidy on LPG, Flour and Rice 2.7000 2.7000
STCs operational expenses 0.3500 0.4000
Fund from Price Stabilisation Account -3.1156 -2.2136
TRANSFER PRICE TO OIL COMPANIES 30.1486 22.2142
Oil Companies’ operational expenses and wholesale margin 1.8200 1.6600
VAT (15%) 5.0674 3.8478
WHOLESALE PRICE 37.0360 27.7220
Retail margin (Filling station’s margin) 1.8140 1.7780
RETAIL PRICE (Price at Filling Station) 38.8500 29.5000

Check here for their retail prices which will be more up to date.

According to their website in the section of Procurement / Distribution

An estimated annual requirement of petroleum products for 2012/2013 is as follows:

PRODUCT

QUANTITY (MT)

White Oil
Unleaded Motor Gasoline 95 RON

130,000

Gas Oil 50 PPM S

225,000

Gas Oil 2500 PPM S

130,000

Jet Aviation Fuel

250,000

Fuel Oil
Fuel Oil 180 CST Catalytic-Cracked product

240,000

Fuel 180 CST Straight-Run product

85,000

Fuel Oil 380 CST Straight-Run Product

135,000

A rough estimate… when selling all stock (These figures will definitely not be precise as the prices constantly change!)
So Gasoline would amount to: 130 000 x 1000 = 130 million litres x Rs.38.85 = Rs.5 billion
Diesel: 225 000 + 130 000 = 355 000 x 1000 = 355 million litres x 29.50 = Rs.10 billion

Then you have jet fuel oil and other oils for which I do not know the prices.

You can break down the prices to get an idea how much different segments are getting.

I was wondering if VAT is to be applied separately on the retail margins by the Filling Stations which of course cannot be the case as there is VAT already on it. I came across this interesting ruling on the MRA website:

“VATR 20

Facts
M Ltd is a private company incorporated in Mauritius and engaged in the marketing of petroleum goods (i.e. Mogas, Gas oil, fuel oil, Jet A1 & lubricants)in the country. The company has 13 retail outlets which are basically run on two models:
1. Dealers-operated retail outlets, where land is owned by the dealer.
2. Company owned Company operated (COCO) retail outlets, where a contractor is appointed by the company to manage the station.

In the first model, the retail margins on Mogas and Gas oil are fully enjoyed by the dealers as the land on which retail outlet has been developed is contributed by him. In the second model (COCO), the retail margins on Mogas and Gas oil are shared between M Ltd and the contractor on an agreed formula, in accordance with the terms of the contract.

Points in issue
Whether it can be confirmed that
1. No Vat charge should apply on ‘retail margin sharing’ as the retail margin has already suffered VAT;
2. M Ltd is correct in charging VAT on ‘equipment fee’ and that the depiction thereof on the invoice is correct;
3. Arithmetical calculations of both VAT elements (in specimen invoices) as shown in Annexure E are correct.

Rulings
1. It is confirmed that since the retail margin has already suffered VAT no charge to VAT should apply on the ‘retail margin sharing’ as sharing of retail margin between the lessor and the lessee does not amount to a supply of services.
2. It is confirmed that M Ltd is correct in charging VAT on ‘equipment fee.’ However, the VAT element on the invoice should be shown in such a way that it clearly indicates that it is in respect of both oil and equipment fee.
3. As the VAT is chargeable on the value including the retail margin of liquefied petroleum gas we suggest that the invoice be amended to show : –
The value inclusive of the retail margin but exclusive of VAT ;
The amount of VAT charged and the rate applied.”

Ref: VAT Rulings

Where does the money go when I buy 1 litre of fuel in Mauritius? by

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