Mauritius Fuel Price Hike Could Come 'At Any Moment', Warns Minister

Mauritians could soon be paying more at the pump. Minister Michael Sik Yuen has issued a stark warning that a fuel price increase could be announced at any moment, signalling that the government is under growing pressure to adjust pump prices in line with global oil market movements. **What did the minister say?** Speaking to Le Défi Media, Sik Yuen stated plainly: "A fuel price hike can happen at any moment." While no specific figure or date was given, the statement is being read as a strong indication that an upward revision is being actively considered by the authorities responsible for setting fuel prices in Mauritius. **How are fuel prices set in Mauritius?** Mauritius does not allow fuel prices to float freely with the international market. Instead, pump prices for petrol and diesel are regulated and periodically reviewed by the State Trading Corporation (STC) — the government body responsible for importing petroleum products — in coordination with relevant ministries. This means ordinary consumers are somewhat shielded from daily price swings, but when a revision does come, it can be significant. The Automatic Pricing Mechanism (APM), introduced to bring more transparency to fuel pricing, is supposed to adjust prices in line with a formula linked to global crude oil benchmarks and the US dollar exchange rate. However, the government has, in the past, delayed or cushioned increases to avoid short-term cost-of-living shocks. **Why could prices rise now?** Global oil prices remain volatile, influenced by OPEC+ production decisions, geopolitical tensions, and the strength of the US dollar against the Mauritian rupee. Any depreciation of the rupee makes imported oil more expensive in local currency terms, adding further pressure on the STC and the public finances if subsidies are used to hold prices down. The government must balance fiscal responsibility — avoiding an unsustainable drain on public funds to subsidise fuel — with the very real impact that higher fuel costs have on transport, food prices, and the cost of living for ordinary Mauritians. **What this means for you** If a fuel price increase is confirmed, the effects would be felt quickly and broadly. Bus and taxi fares could rise. Hauliers and delivery companies typically pass on higher fuel costs, pushing up prices for goods — including food. Families that rely on private vehicles for daily commuting would face higher monthly expenses. Businesses — especially in logistics, agriculture, fishing, and manufacturing — would also see operating costs climb, potentially feeding through to wider inflation at a time when many household budgets are already stretched, as seen in recent surges in the price of basic goods such as vegetables. No date has been announced, and the government retains the authority to decide both the timing and the scale of any revision. Mauritians are advised to watch for an official communiqué from the STC or the Ministry of Commerce. Source: Le Défi Media