Mauritius Government Refuses to Rule Out Another Fuel Price Hike

The Mauritian government has signalled that another increase in fuel prices is possible, declining to rule out a further hike at the pump as international oil market pressures continue to weigh on the island's energy costs. The warning comes amid ongoing concern about the cost of living in Mauritius, where fuel prices directly affect transport, food distribution, and the day-to-day expenses of households and businesses alike. **How fuel pricing works in Mauritius** Fuel prices in Mauritius are not set by the free market. They are regulated by the State Trading Corporation (STC), a government-owned body responsible for importing and distributing petroleum products across the island. The STC buys fuel on international markets — primarily priced in US dollars — meaning that both global oil prices and the rupee-dollar exchange rate directly influence what Mauritians pay at the pump. The Automatic Pricing Mechanism (APM), introduced to adjust pump prices periodically based on these international factors, means prices can move up or down depending on market conditions. When the rupee weakens or crude oil prices rise, the formula typically pushes local prices higher. **Why this matters now** Any new fuel price increase would add further strain on Mauritian consumers already dealing with elevated living costs. Petrol and diesel prices affect not just private motorists but also bus operators, taxi drivers, fishermen, and the logistics sector — meaning knock-on effects ripple across the economy. For lower-income households, which spend a greater share of their income on transport and food (whose delivery costs are fuel-linked), a price rise hits hardest. The government has previously used subsidies and STC mechanisms to soften or delay price increases, but these measures come at a fiscal cost. With the STC board recently replaced amid controversy over delays in passing on cost-of-living relief, the political sensitivity around fuel pricing is high. **What this means for residents and businesses** If a new hike is confirmed, drivers should expect higher costs at petrol stations across the island. Bus fares, which are also regulated, may come under pressure if operators argue higher fuel costs make current fares unviable. Businesses that rely heavily on road transport — including supermarkets, construction firms, and tourism operators — may face margin pressure, with some likely to pass costs on to consumers. No specific figure or timeline for a potential increase has been announced. The government appears to be preparing the public for the possibility while monitoring global oil markets. Source: Le Defi Media