Mauritian Government Sets Up Interministerial Panel to Fight Dominant Monopolies

The Mauritian government is setting up a high-level interministerial committee chaired by the Prime Minister to investigate monopolies and quasi-monopolies, in a direct bid to better regulate pricing practices and protect consumers from the rising cost of living.

The decision, formally approved by the Cabinet, comes amid growing public concern over domestic market prices.

The newly formed panel will be tasked with scrutinising price-related issues and formulating recommendations to ensure fairer pricing structures across the island nation.

Market Concentration Under Scrutiny

Under the country’s Competition Act, a monopoly situation is legally defined as a market where a single company supplies or purchases 30% or more of the available goods or services, or where three or fewer enterprises jointly control 70% or more of the market.

While the law already empowers the Competition Commission to investigate dominant firms suspected of distorting competition or abusing their market position, the government’s latest intervention signals a shift in strategy.

According to consumer rights advocates, the establishment of the committee suggests authorities now view local market distortions—rather than purely international inflation—as a primary driver of high prices.

Consumer groups have strongly welcomed the initiative, particularly its top-tier political backing.

Jayen Chellum, Secretary General of the Association des consommateurs de l’île Maurice (ACIM), called it a “very good measure”, noting that ACIM has repeatedly flagged monopoly concerns in the past following sharp price hikes.

Mr Chellum proposed that the government should introduce a maximum mark-up on products sold by monopolies at both wholesale and retail levels.

Economic Headwinds and Social Stability

The intervention arrives at a challenging time for the Mauritian economy. Although inflation has shown recent signs of slowing, household budgets remain under severe strain.

Data from Statistics Mauritius reveals that while headline inflation stood at 3.7% in 2025, the consumer price index rose by 4.5% between December 2024 and December 2025.

Families continue to face high costs for food, transport, utilities, and general household expenses, alongside a recent hike in electricity tariffs.

The strategic composition of the new committee reflects the breadth of the crisis, bringing together ministers from:

• Commerce and Consumer Protection
• Labour
• Social Security
• Economic Planning
• International Trade
• SMEs and Cooperatives

Suttyhudeo Tengur, President of the Association pour la protection de l’environnement et des consommateurs (APEC), observed that the inclusion of the Minister for SMEs and Cooperatives is highly significant.

It indicates the government may attempt to break the stranglehold of dominant distributors by encouraging alternative supply chains and cooperative purchasing networks.

The economic backdrop is further complicated by external factors. The International Monetary Fund (IMF) recently warned that Mauritius faces an uncertain global landscape tied to Middle Eastern tensions, forecasting that local economic growth will slow from 3.2% in 2025 to approximately 2.8% in 2026.

Expectations and Potential Measures

Experts anticipate the committee will consider several major interventions, including:

• Tighter controls on import and distribution profit margins.
• Firmer action against anti-competitive practices.
• Measures to lower entry barriers for new market operators.
• Targeted support for vulnerable households.

However, consumer advocates caution that expectations must remain realistic.

As a small island economy, Mauritius relies heavily on imports for its food, fuel, and essential goods.

Consequently, local prices will remain exposed to external shocks such as global oil prices, maritime freight costs, and currency fluctuations.

“Ultimately,” Mr Tengur noted, “the population will judge the success of this initiative not by the number of meetings held, but by a very simple reality: seeing a concrete drop in prices in supermarkets, pharmacies, and essential utility bills.”

Regulated Prices Adjusted: Cooking Oil and Livestock

In parallel developments highlighting ongoing price volatility, the Cabinet has approved revisions to regulated and subsidised prices for essential commodities:

Smatch Cooking Oil

Faced with rising international procurement costs, the government has revised the wholesale and subsidised retail prices for Smatch cooking oil in Mauritius and Rodrigues.

The retail price for a one-litre bottle has risen to Rs 68.95, up from Rs 62.95.

Live Cattle Imports

A separate interministerial committee, chaired by the Minister of Housing and Lands, has fixed the retail price of imported live cattle for the Eid-Ul-Adha festival at Rs186 per kilo.

The price, validated by the Cabinet on Friday 8 May, came into effect on 9 May and will remain mandated until ten days after the festival.

The price was set following an auditing exercise by the Ministry of Commerce and Consumer Protection, which reviewed cost structures, invoices, and operational expenses submitted by operators.

However, the decision has drawn strong criticism from the private sector.

Importer Socovia Vue Ltd stated that the mandated tariff is commercially unviable and well below its actual cost price, which it had estimated at Rs 220 per kilo.

A company representative explained that import costs had soared after a foot-and-mouth disease outbreak in South Africa forced them to source cattle from compliant alternative nations like Namibia and Kenya at short notice.

This logistical shift, coupled with global demand and fluctuations in the US Dollar and South African Rand exchange rates, severely inflated costs.

Despite holding a meeting with ministry officials this week to voice financial concerns, Socovia stated it is legally bound to comply with the prescribed price but is currently consulting legal advisors on how to proceed.

Source: l’Express