Mauritius fuel price hike prompts calls for margin controls and tax cuts

Following a 10% increase in fuel prices in Mauritius, the Association des consommateurs de l’île Maurice (ACIM) has called for strict government control over merchant profit margins. ACIM Secretary General Jayen Chellum warned of potential price gouging, noting that some retailers are inflating costs disproportionately compared to the actual fuel hike. The ACIM is advocating for the implementation of maximum mark-ups to protect consumer purchasing power.

In response to the rising costs, Reform Party leader Roshi Bhadain has proposed a temporary tax reduction to lower the price of gasoline from Rs 77.70 to Rs 67.30 per liter. His proposal includes eliminating the Re 1.85 contribution to the Road Development Authority, transferring the Rs 7.20 subsidy for food and gas to the Consolidated Fund, and removing the 15% VAT applied to these levies. Bhadain argues these measures are necessary to mitigate the broader inflationary impact on the cost of living.