Mauritius Faces Oil Price Uncertainty Amid Israel-Iran Tensions

Tensions between Israel and Iran may threaten the potential for lower fuel prices in Mauritius. The ongoing conflict between the two countries has created uncertainty in the global oil market. However, there is no immediate cause for concern regarding Mauritius’s fuel supply.

The State Trading Corporation (STC) reported that it currently has enough stock, roughly one month’s worth, to meet demand.

The STC is closely monitoring the situation, especially the duration of the conflict.

The longer the war lasts, the greater the risk of significant increases in global oil prices.

Much will depend on how the conflict develops in the Gulf region, a key area for worldwide oil supplies.

For now, the STC remains cautious but reassuring. Thanks to the Price Stabilisation Fund, a fuel price increase of less than 4% could be absorbed without an immediate rise at the pump.

Nonetheless, the threat of escalation persists, dampening hopes for short-term price reductions.

Before tensions escalated, the STC had already begun efforts to secure a new oil supply contract scheduled to start on August 1, 2025.

In a June 15 interview with Défi Quotidien, Minister of Commerce Michael Sik Yuen announced that a new tender process was underway, which could save the government around 1 billion rupees. This saving remains uncertain amid current geopolitical instability.

Source: Defi Media