Reunion Island: the price of fuel continues to decrease
Since June 1st, fuel prices have decreased in Reunion Island. 9 cents have reduced the price of unleaded gasoline to reach 1.63 EUR, while diesel has settled at 1.26 EUR with a decrease of 7 cents.
Last year, the geopolitical crisis in Ukraine led to historic increases in hydrocarbon prices. In French gas stations, gasoline prices struggled to return to their pre-war level. Despite everything, Reunion Island still benefits from some of the lowest pump prices in France. From January to May 2023 only, the diesel price has decreased by about 12 EUR cents, and the discount continues. At the beginning of June, diesel settled at 1.26 EUR to 7 cents less than in May, and unleaded gasoline at 1.63 EUR compared to 1.72 EUR.
Factors contributing to cost reduction
There are several reasons for this decrease. First, the drop in fuel demand in Asia after Eid celebrations contributed to the decrease in global prices. American stocks also increased, while Chinese fuel exports experienced a rise. These factors mainly explain the decrease in prices in Singapore where the prices of unleaded gasoline and diesel have decreased respectively by 12.22 % and 10.94 %.
It should be noted that monthly butane gas prices have slightly increased while those of propane remained stable. Similarly, the exchange rate between the euro and the dollar is almost stable, not impacting fuel prices but increasing the price of gas by about 1 cent. Furthermore, contributions to the financing of energy-saving aids have decreased by 1.03 % while the maritime freight of fuels remains almost unchanged with only a slight increase of 0.02 %.
As a reminder, the Prefect of Reunion Island sets monthly maximum fuel prices by current regulations. These maximum prices are calculated considering the costs borne by companies and applicable taxes. Unlike mainland France, the State does not collect Value Added Tax (VAT) or Domestic Consumption Tax on Energy Products (TICPE) on fuels in Reunion Island. The price, margin, and income observatory is informed of these revisions before they are implemented.
Ianja Ny
