Impact of the Middle Eastern War: Mauritius Strengthens Measures, Fiscal Decisions Pending

In response to the leader of the opposition during the PNQ, the Prime Minister assured that he is closely monitoring the developments of the conflict in the Middle East, describing it as a "major external shock" for the Mauritian economy, characterized by soaring energy prices and disruptions to supply chains.

He indicated that the government has already initiated several measures to mitigate the impact, including the establishment of an inter-ministerial crisis committee, which has submitted its first report. This will be reviewed before proposals are formulated and presented to the Cabinet.

In terms of energy, concrete actions have been taken: increasing fuel stocks, greater reliance on independent power producers (IPP), enhanced energy-saving campaigns, and directives to ministries to reduce their consumption.

Restrictions on non-essential electricity usage are also being considered. Meanwhile, the government is accelerating its transition to renewable energy, aiming for an additional 405 MW in the coming years.

The Prime Minister also mentioned securing the supply of petroleum products, with guaranteed short-term stocks and the imminent signing of an intergovernmental agreement with India.

However, the fiscal measures requested by the opposition, including a potential reduction in VAT and excise duties on fuels, remain under study and have not yet resulted in decisions.