My dear automobile, never mind the gasoline price!

The rise of the automobile in Mauritius. In spite of being an isolated island located in the Indian Ocean, tiny Mauritius has seen an interesting evolution in the transportation system. Let’s do a quick historical snapshot. During colonial times, goods were transported by animals. For example, in the 1860s, there were about 2000 horses, 4000 donkeys and 4500 carriages and carts. Roads were rough and rudimentary. With the introduction of the railways, animal-based transport declined, and in 1901, the first motorized vehicle appeared. The first two-seater car imported by the Goupille company arrived in Mauritius. The first motorized truck also appeared in 1901, introduced by the Union Regnard (later FUEL), and capable of carrying 5 tons of goods. By 1930, the island had 3016 vehicles, around 2401 private cars, 300 taxis, 303 trucks, 92 buses and 220 motorcycles. In 1950, the number rose to 5161 and by 1960, with the decline of the railways, the number of vehicles rose to 13291. In 1970, the number doubled to 25389 motorized vehicles. By 2019, Mauritius had a staggering 580,629 vehicles registered, of these, 299,998 were cars and 216,863 were motorcycles. (1)

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Cars are very expensive in Mauritius. With the rising price of gasoline, import duties, insurance, registration and maintenance, one would assume that few could afford this luxury. However, sales continued to rise. The Covid-19 pandemic put a temporary brake on sales but by 2021, sales went up by 13.9%. In 2019, the vehicle market hit an all-time record, with 10,351 registrations in one year. (2)

The automobile: a symbol of status. Since independence in 1968, the standard of living in Mauritius has improved significantly. For example, the per capita income in 1976, was $777 and rose to $8623 in 2020. (3) In 2022, it stood at $9061. This rise in living conditions has created a demand for consumer goods, including the desire to own a private car. While for some, a car is a necessity for various reasons, many see a car as a symbol of status. It is not unusual to see more than one car parked in the tiny driveway across the island. Are Mauritians concerned with the rising price of gasoline and is the price hike having an impact on private car ownership? Yes of course many are concerned. A hike in price causes hardships and has a chain effect, but does not deter people from owning a car.

Like many commodities, the political economy of oil and gas demonstrates how it is controlled and distributed. The oil and gas cartel is a powerful organization and it is closely linked to many governments around the world. How prices are fixed and how decisions are made on distribution and production is complex, yet many fall prey to a system that causes misery in the poorer nations. Over the years, societies have become dependent on oil and gas, and this dependency has political and economic consequences. Very often it does not make sense to the common person how the prices of oil and gas keep on rising and no one can do anything about it. Oil companies thrive on wars and economic recessions. At times how the price of oil is fixed seems arbitrary. Governments allow the increase and when the price of gasoline goes up, they pocket the taxes. The relationship between oil companies and governments is more than a marriage of convenience. The profits are huge. The amount of taxes collected on gasoline is monumental. It is a major source of revenue. How these taxes are used and for what purposes depend on individual governments. In any case, it is the average consumer that falls victim to the system. But what are the options?

The war in Ukraine has raised serious questions on alternative sources of energy and the need to reduce dependency on oil and gas. There is an international buzz on green energy and sustainable development. The COP conferences have indicated that at the end of the day politics determines policies. However, nations have the power to veto and influence decisions. These complexities are not easy to untangle. In the meantime, in countries like Canada and England, there are bike lanes as an alternative to the automobile. In Singapore, there are policies in place to control the number of vehicles. Therefore, there are attempts, but the success of these alternatives depends on good and responsible citizenship.

A quick snapshot of the situation in Mauritius is quite revealing. Yes, there are many vehicles, and there is a problem of congestion, pollution and roads that are narrow and full of potholes. These concerns have been discussed at many levels. There is another layer to it, namely, the role and responsibility of the consumer. The number of SUVs and trucks on the road is staggering. These vehicles are known to have a high gas consumption. At a time when one should be looking at alternatives, many chose to drive large vehicles on roads that are narrow. The highways often look scary with SUVs and trucks racing away. In this context, it seems a hike in gasoline price has very little impact on some. Consumers will moan for a few days and then it’s back to business as usual, until the next hike in price. However, for the middle class and the common working folks, it’s misery. For these people any price increase has a direct impact on their lives.

The consumer also knows that gasoline price will continue to increase. But who is prepared to let go of their car and walk or bike to the bakery in the morning? People must make personal choices and be part of the solution. The automobile is a prized possession, a symbol of status, affluence, and freedom. Ultimately, the cost at the pump matters little to those who can afford it.  Governments know it and they amass the taxes. This psychology works wonders for the producers and dealers.

The debate should not be restricted to the pricing. In a world of corporate capitalism, the power of the cartel is not easy to break, and when one votes for a government, one has essentially given it the mandate to collect taxes. A legitimate question to ask is: how are these taxes utilized and are alternatives being discussed and taken seriously? Good and responsible citizenship matters, it can influence key decisions. The next time there is a price hike, think of individual responsibility, and the ballot box.

References

(1)https://en.wikipedia.org/wiki/Transport_in_Mauritius

(2)https://www.focus2move.com/mauritius-cars-sales/

(3)https://www.macrotrends.net/countries/MUS/mauritius/gdp-gross-domestic-product

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