The Association for Environmental and Consumer Protection (APEC) in Mauritius has expressed deep concern over the recent 10% hike in fuel prices, which came into effect on September 29, 2026. The price of petrol has increased from Rs 70.65 to Rs 77.70 per liter, while diesel has risen from Rs 71.25 to Rs 78.35 per liter. This latest increase has sparked worries that the current pricing mechanism has failed to shield consumers from significant price fluctuations.
According to APEC, the price of petrol has surged by Rs 19.25, or 32.93%, and diesel by Rs 19.40, or 32.91%, since March 2026. The association attributes this sharp increase to a flawed pricing mechanism, which it claims has resulted in consumers bearing the brunt of rising fuel costs. APEC has identified several issues with the current system, including the method used to calculate the reference price, which it says relies too heavily on future projections rather than actual costs.
One of the key concerns raised by APEC is that the reference price calculation combines three months of actual prices and three months of projected prices, giving too much weight to forecasts. This approach, the association argues, can lead to consumers paying for costs that may not materialize as predicted. Furthermore, APEC points out that the fiscal structure of the fuel pricing system is also problematic, with high excise duties and contributions adding to the cost of fuel.
APEC has also raised questions about the Price Stabilization Account (PSA), which is meant to cushion the impact of price fluctuations. The association notes that there is a discrepancy of around Rs 234 million between the losses reported in the cargo statement and the deficit mentioned in the Petroleum Pricing Committee's communiqué. APEC is calling for an independent audit of the PSA, as well as greater transparency in the calculation of the reference price.
In addition to an audit of the PSA, APEC is demanding the publication of all elements used in the calculation of the reference price, the abolition of VAT on duties and contributions, and a review of the current pricing formula. The association argues that the current system is not transparent and has led to a significant increase in fuel prices, which is having a negative impact on consumers.
The latest fuel price hike has sparked concerns about the impact on Mauritian households, with APEC warning that further increases are likely if the pricing mechanism is not revised. The association's president, Suttyhudeo Tengur, has called for urgent reforms to the pricing system to ensure that consumers are protected from volatile fuel prices.
Key points
- APEC has identified several issues with the current fuel pricing mechanism in Mauritius, including a flawed reference price calculation and a problematic fiscal structure.
- The association is calling for an independent audit of the Price Stabilization Account and greater transparency in the calculation of the reference price.
- APEC is demanding a review of the current pricing formula to ensure that it is fair and transparent, and that consumers are protected from volatile fuel prices.
