Remove Fuel Taxes and Mauritius Loses Free Bus Rides, Cheap Rice and Gas

A prominent voice in Mauritian public life is pushing back against calls to scrap fuel taxes, warning that doing so would trigger a cascade of price rises and the loss of key social subsidies that millions of Mauritians depend on daily. Former minister Xavier-Luc Sik Yuen has laid out a stark picture of what life would look like if the government removed the taxes currently levied on fuel in Mauritius. Speaking publicly on the issue, he argued that fuel taxes are not simply a revenue tool — they are the financial backbone of several major welfare programmes. **Free public transport would end** One of the most visible consequences, according to Sik Yuen, would be the abolition of free public transport. Mauritius introduced free bus travel for all passengers in 2019 — a flagship social policy that has since become a cornerstone of daily commuting for tens of thousands of Mauritians, particularly the elderly, students, and low-income workers. That programme is funded, in part, through revenues generated by fuel taxes. **Ration rice could jump to Rs 150** Sik Yuen also warned that the price of ration rice — a subsidised staple sold at controlled prices to lower-income households through the government's social safety net — could rise sharply to Rs 150 per unit if fuel tax revenues were removed from the subsidy equation. Currently, ration rice is sold at a heavily discounted rate, making it accessible to vulnerable families across the island. **Gas canisters at Rs 600** Perhaps most striking is the projected impact on cooking gas. Sik Yuen suggested that a standard domestic gas canister (bonbonne), currently subsidised, could reach Rs 600 without the cross-subsidisation that fuel tax revenues help to finance. For households that rely on bottled gas for cooking — a large proportion of the Mauritian population — this would represent a significant hit to the monthly budget. **Why this debate matters** The debate over fuel taxation in Mauritius is not new, but it has intensified in recent months as global oil price fluctuations and local cost-of-living pressures have prompted some commentators and opposition voices to call for tax cuts at the pump to deliver immediate relief to consumers and businesses. Sik Yuen's intervention reframes the debate: the question is not simply whether fuel is too expensive, but who ultimately pays — and who loses out — when the tax structure changes. **What this means for ordinary Mauritians** For everyday consumers, the argument is a reminder that subsidies on essential goods — transport, food, energy — do not come from thin air. In Mauritius, fuel taxes serve a dual purpose: raising government revenue and cross-subsidising programmes that keep the cost of living manageable for the most vulnerable. Any reform of fuel taxation would need to identify alternative funding sources before dismantling the current system, or risk leaving low-income households significantly worse off. The discussion is likely to intensify ahead of future budget deliberations, where the government will face pressure to balance fiscal sustainability with social protection commitments. Source: Le Defi Media