Mauritius Petrol Prices Could Drop Amid 8.7% Global Oil Slump

Petrol prices in Mauritius could be set for a cut following a significant drop in global oil costs and an improvement in the country’s Price Stabilisation Account (PSA) deficit. The combination of these factors, according to local observers and consumer groups, creates a favourable environment for a reduction at the pump.

Global oil prices have fallen by 6.1% in August alone, contributing to a total decline of 8.7% since the start of the year.

This trend is largely attributed to a weakening of demand, particularly in the United States, the world’s largest consumer.

The downward pressure has been compounded by increased supply from OPEC+ nations, including key players Saudi Arabia and Russia, who have been raising their production volumes since April.

The International Energy Agency (IEA) has also highlighted the likelihood of an oversupply on the global market, further pushing prices down. For instance, on Thursday, September 11, the price of Brent crude dropped by 0.21% to $67.35 a barrel, while US WTI fell by 0.30% to $63.48.

Local Conditions Favour Price Reduction

In Mauritius, the financial health of the Price Stabilisation Account (PSA), a fund designed to absorb fuel price fluctuations and prevent sharp increases, has seen a marked improvement.

The deficit has shrunk from Rs 3.8 billion in September 2024 to Rs 2.4 billion in August 2025.

While the account remains in deficit, this notable improvement, along with the international price drop, has reignited discussions about a potential price review.

According to a Defi Media source close to the matter, a price reduction could be considered by the Petroleum Pricing Committee (PPC) if a price variation of close to or less than 4% is observed.

However, current regulations stipulate that the PSA must be in surplus for an automatic reduction, a condition not yet met.

The PPC’s last meeting was on August 6, 2025, when no price changes were made, leaving petrol at Rs 61.20 and diesel at Rs 58.95.

An anonymous observer noted that the current pricing mechanism does not always reflect downward trends in the international market, pointing to a recent cargo of oil imported by the State Trading Corporation (STC) at a price approximately $50 per barrel lower than the previous one.

The observer added that any change to the system would require political will to ensure better responsiveness to market shifts.

Experts Call for Action

Consumer advocate Suttyhudeo Tengur, president of the Association for the Protection of the Environment and Consumers (APEC), believes a price cut is the logical next step given current market data.

He added that the outcome, however, will depend on the existing pricing mechanism.

Economist Manisha Dookhony shared this view, suggesting that a price reduction could have been considered at the last PPC meeting.

She s speculating that the committee may have chosen to wait for market trends to stabilise, possibly due to a new supply contract signed by the STC.

Dookhony anticipates a price decrease at the next PPC meeting unless there are unforeseen changes in global prices.

She highlighted that a reduction in fuel prices would have a direct positive impact on inflation and other sectors.

Dookhony also questioned the PPC’s current practice of meeting quarterly, noting that some countries adjust fuel prices daily.

She believes a more reactive system is feasible for Mauritius, as the STC regularly receives shipments and knows the purchase price in advance.

Further down the line, an additional factor could influence pricing: the Ministry of Commerce has initiated negotiations to potentially import oil from India, with payment in rupees.

This development, while still under discussion, could influence future procurement and pricing of fuel in Mauritius.

Source: Defi Media