India to Supply Fuel as Middle East Crisis Hikes Import Costs 82 %

Prime Minister Navin Ramgoolam has announced that Mauritius will sign a government-to-government (G2G) agreement with India this Thursday, 9 April, to secure a long-term supply of fuel.

The deal, which will see the Indian Oil Corporation provide petroleum products to the island, follows what the Prime Minister described as “fruitful” discussions with his Indian counterpart, Narendra Modi.

Rising Economic Pressures

The announcement, made during a Private Notice Question (PNQ) in the National Assembly on Tuesday, comes as the country faces significant economic headwinds.

Mr Ramgoolam revealed that the State Trading Corporation’s (STC) import bill has surged by 82%, a spike attributed to the ongoing instability in the Middle East.

In response to these mounting costs, the government confirmed that an increase in the price of bread is currently under consideration.

However, those hoping for relief at the pumps will be disappointed, as the Prime Minister stated there are no plans to study a reduction in VAT on petroleum products.

Political Fallout

During the session, the Prime Minister cast blame on the previous Mouvement Socialiste Militant (MSM) administration.

He argued that the current energy crisis was exacerbated by the former government’s decision to terminate the contract with Betamax.

“Without this,” Mr Ramgoolam declared, “the country would not find itself in such a situation.”

The formal signing on 9 April is expected to provide more clarity on the volume and duration of the supply as Mauritius looks to stabilise its energy security.

Source: Defi Media