Israel-Iran Conflict: Uncertainties Regarding Possible Fuel Price Decrease in Mauritius

The potential decrease in fuel prices in Mauritius could be jeopardized by tensions between Israel and Iran. The conflict between the two nations casts uncertainties over the global oil market.

However, there is no cause for alarm at this time, as the country's supply is secure. The State Trading Corporation (STC) claims to have sufficient stocks, at least for now, amounting to approximately one month’s supply.

The STC is closely monitoring the developments of the conflict between Israel and Iran. The main concern is the duration of this war; the longer it lasts, the more significant the impact on global oil prices is likely to be. Any substantial changes will depend on developments in the Gulf region, a strategic hub for global crude oil supply.

For now, the STC remains cautious yet reassuring. Thanks to the Price Stabilisation Fund, a potential increase of less than 4% in fuel prices could be absorbed without immediate effects at the pump.

However, the threat of an escalation in the conflict remains ever-present, which dampens hopes for a short-term price decrease.

Before the escalation of tensions, the STC had initiated steps towards a new supply contract, set to commence from August 1, 2025.

It is worth noting that in an interview with Le Défi Quotidien on June 15, Commerce Minister Michael Sik Yuen announced that a new tender had been launched, promising a reduced cost of approximately 1 billion rupees for the state. This significant savings is now uncertain due to the current geopolitical instability.