Energy Prices to Soar by 15% in Mauritius Amid Global Supply Crisis

MAURITIUS faces an imminent wave of price hikes across electricity, transport, and essential goods as the Cabinet meets this Friday, 10 April, to decide on crucial measures to combat the global energy crisis.

The nation is bracing for an acceleration in inflation following the closure of the Strait of Hormuz—a vital artery for 20% of the world’s oil.

Despite a brief period of price stabilisation earlier this week and a short-lived ceasefire between the US and Iran, a fresh Israeli strike in the region has reignited tensions, sending shockwaves through global energy markets.

Impact on Households

Domestic electricity bills, which currently range between Rs 1,500 and Rs 3,000 for the average household, are expected to bear the brunt of the crisis. Government insiders suggest a tiered price increase of 10% to 15% is under consideration.

Under these proposals:

• A Rs 2,000 monthly bill would rise to Rs 2,200 (10%) or Rs 2,300 (15%).
• A Rs 3,000 bill could climb as high as Rs 3,450.

While the increases may appear modest in isolation, experts warn the cumulative effect will severely squeeze the purchasing power of the middle class and the most vulnerable.

However, sources indicate the hikes will be “targeted and proportionate,” with households on the Social Register likely to receive support to mitigate the impact.

Supply Lines Secured

Despite the volatility, the immediate supply of fuel remains stable. A delivery of heavy fuel oil is expected between 15 and 18 April, ensuring electricity production continues for the coming weeks.

The Minister of Commerce, Michael Sik Yuen, has also confirmed that a fuel tanker is due to arrive between 17 and 18 April, with a further shipment scheduled for June.

While these arrivals offer short-term respite, officials warned that these cargoes were negotiated at significantly higher costs than usual.

A “Wake-Up Call” for Reform

The crisis has sparked a debate over the nation’s long-term energy security. Energy expert Sunil Dowarkasing argues that Mauritius is now paying the price for a delayed transition to green energy.

“This dependence exposes the country directly to external shocks and global market fluctuations,” Mr Dowarkasing said. “Having failed to accelerate the shift to renewables, the country is forced to endure cost increases beyond its control.”

He described the current situation as a “wake-up call,” warning that without a clear strategy to move away from fossil fuels, Mauritius will remain at the mercy of geopolitical instability.

Source: Defi Media