Chellum: "The decrease in fuel prices is a step forward, but not enough"
Chellum: "The decrease in fuel prices is a step forward, but not enough"
As the deficit of the Price Stabilisation Account diminishes, the limited drop in fuel prices raises questions about the management of stabilisation funds and fuel pricing policies.
The deficit of the Price Stabilisation Account (PSA) continues to decrease. Valued at Rs 3.8 billion in September 2024, it now stands at approximately Rs 2.1 billion in November 2025. This account, created to smooth out fluctuations in local fuel prices, remains at the heart of the debate regarding petroleum pricing policies. The government and the Petroleum Pricing Committee (PPC) still rely on its financial status to justify pump prices, a strategy previously employed by the former administration.
During its meeting on November 3, 2025, the PPC recommended that the retail price of petrol be reduced from Rs 61.20 to Rs 58.45 per litre, representing a decrease of Rs 2.75. The price of diesel remains unchanged at Rs 58.95 per litre. This decision was made in accordance with Rule 5 of the Petroleum Pricing Regulations after reviewing global prices and estimating a Rs 2.5 billion deficit in the diesel stabilisation account.
The stabilisation system relies on two distinct accounts - one for petrol and another for diesel. Revenues or losses resulting from price adjustments are transferred to these accounts to avoid frequent price fluctuations at the pump. However, this mechanism has often been criticized for its lack of transparency and political usage.
Petrol Users Subsidising Diesel
For Jayen Chellum, Secretary-General of the Consumers Association of Mauritius (ACIM), the announced reduction is insufficient given market trends. "The decrease in petrol prices is a step in the right direction, but not enough," he believes. He argues that a reduction of at least Rs 5 per litre of petrol would have been justified. According to him, petrol consumers are "somehow subsidising" diesel users due to the imbalance between the two PSAs. He notes that, prior to this decision, the price of diesel was already lower than that of petrol.
Jayen Chellum also emphasizes that the government committed, during the last election campaign, to reduce petrol prices by Rs 20. A first reduction of Rs 5 was implemented in December 2024 when the PSA deficit was at Rs 3.4 billion. Since then, the balance has improved but remains negative.