Aftermath of the Global Crisis: Proposed Rs 5 Increase on Gas and Rs 1.40 on Bread

The pressure on several essential prices is mounting. The government is preparing to decide on a Rs 5 increase in the price of gasoline per liter, a Rs 1.40 increase on bread, and a new electricity tariff structure. These decisions, expected next week, are set against the backdrop of an international crisis and significant tensions regarding energy costs and supply.

Following the increase in household gas prices, Mauritians could face another round of price hikes. According to our sources, an increase of at least Rs 5 for gasoline, a rise of about Rs 1.40 for bread, and adjustments to electricity tariffs are among the scenarios being seriously considered at the highest levels of the state. These decisions are likely to be finalized in the coming days, amid significant pressure stemming from the economic fallout of the conflict in the Middle East. Authorities have already acknowledged that the war has heavily inflated the costs of certain strategic imports, particularly petroleum and energy products.

Crisis Committee to Assess Risks
The government crisis committee, established to monitor the economic and social impact of the war, is currently deepening its assessment. Chaired by Prime Minister Navin Ramgoolam, it includes several key ministers tasked with measuring immediate threats and proposing rapid responses. Its mandate is clear: analyze the repercussions of the crisis, anticipate risks for Mauritius, and submit measures to protect the population and the most vulnerable economic sectors. Its existence has been formalized in the cabinet decisions.

In advance, technical work is already underway in several ministries. Proposals have been solicited on two fronts: on one hand, adjusting prices that have become difficult to sustain; on the other hand, establishing mitigation mechanisms to limit the impact on households and certain economic operators. Therefore, the exercise is not solely about raising prices but also about determining how far the state can cushion the shock and at what budgetary cost.

Gasoline: The Next Explosion?
The fuel pricing issue is one of the most volatile. As of March 24, 2026, the Petroleum Pricing Committee maintained the price of gasoline at Rs 58.45 per liter while increasing diesel from Rs 58.95 to Rs 64.80 starting midnight on March 25. The State Trading Corporation explained that the price of gasoline should have normally risen but was temporarily contained thanks to the positive balance of the Price Stabilization Account specific to this product. For diesel, the increase was deemed unavoidable. Today, a roughly 10% increase in gasoline is under consideration, equating to about Rs 5 per liter.

Bread: A Tense Compromise
Bread is another socially sensitive issue. Bakers have been demanding a regulated price increase for several days, citing soaring production costs, particularly diesel, logistics, and operational expenses. The sector proposes raising the price from Rs 2.60 to Rs 4.78, while the government attempted a compromise at Rs 3.50. As this latter figure has not convinced operators, a price around Rs 4 now seems the most probable option, representing an increase of about Rs 1.40 for commonly consumed bread.

Electricity: Towards a Gradual Increase
Regarding electricity, Minister Patrick Assirvaden acknowledged the extent of the shock: Mauritius had to pay an additional Rs 500 million for a shipment of heavy fuel oil and has to budget a similar amount for the next, totaling a billion rupees in just fifteen days. Several scenarios are being considered for the Central Electricity Board (CEB), ranging from a gradual tariff increase to a temporary "war levy," to limit the political and social shock while alleviating pressure on the finances of the energy sector.

The government is proceeding cautiously before imposing drastic measures. The cabinet, meeting on Friday, reviewed the proposals made during the first meeting of the crisis committee, chaired by the Minister of Energy. A second meeting, likely under the Prime Minister's chairmanship, is expected to take place next Wednesday.

Alongside tariff adjustments, several measures aimed at reducing electricity and fuel consumption are being considered without hindering economic activity. Among these:

• Increased use of remote work, with necessary adjustments for electricity and internet allowances, working conditions, and managing atypical hours, including nights and weekends.
• A hybrid model alternating office and home presence to reduce commuting and congestion, while considering the stable energy consumption of air-conditioned buildings.
• Compression of the workweek, possibly moving to four days with longer days, tailored to the specifics of each sector.
• Online education, to limit travel and the energy consumption of school infrastructures.
• Energy sobriety in public and commercial spaces, including reducing lighting, turning off parking lights, and limiting air conditioning.
• Flexible hours and work during off-peak times, adapted to each sector.

A Delicate Political Shift
What is unfolding is not merely a series of technical adjustments. After attempting to contain the shock, the government must arbitrate between two contradictory imperatives: preserving the financial balance of the state and public bodies, or protecting the purchasing power of Mauritians in a context of heightened social tension.