Global Oil Index Comparison
Analyzing the correlation between international Brent Crude benchmarks and the retail Petroleum Pricing Mechanism (PPM) in Mauritius.
Proxy Benchmark
Mauritius imports are priced against Platts Singapore (MOPS). Brent Crude serves as a high-correlation public proxy for tracking these international trends.
CIF Weighting
Landed costs represent ~45% of retail price. The remainder is comprised of fixed excise duties, 15% VAT, and various social subsidies (LPG/Rice/Flour).
Stabilization Buffer
The PPM uses a 6-month weighted average and a Price Stabilisation Account to dampen volatility, leading to a lagging effect on local pump prices.
Brent hit $132 peak. Local prices reached Rs 49.50 before the global financial crisis caused a crash to $40.
Oil collapse from $112 to $30. Local prices cut by only 25% due to fixed tax floors and exchange rate shifts.
Brent fell to $18 (COVID). Mauritius prices stayed at Rs 44 as the stabilization account absorbed the shock.
Ukraine war drive oil to $122. Sustained shock exhausted buffers, hitting all-time high of Rs 74.10.