- Mauritius signed agreements with India for long-term petroleum product supply
- Indian Oil Corporation will directly supply petrol, diesel, and aviation fuel
- Mauritius depends on imports and faces risks from price and supply disruptions
Mauritius has signed agreements with India to secure the long-term supply of petroleum products, strengthening energy cooperation between the two countries as the import-dependent island nation navigates higher fuel costs and global supply uncertainties.
The agreements include a direct sales and purchase arrangement with state-owned Indian Oil Corporation (IOC), as well as a government-to-government memorandum of understanding for wider cooperation in the oil and gas sector, according to a Reuters report.
ALSO READ | Why Does CAS Turnover Spike On Settlement Days? A Prop Trader Explains
India's Minister of Petroleum and Natural Gas, Hardeep Singh Puri, visited Mauritius to finalise the agreements.
Under the sales and purchase arrangement, Indian Oil is expected to supply petroleum products, including petrol, diesel and aviation turbine fuel, helping Mauritius secure a direct and long-term source of refined fuels.
Mauritius is heavily dependent on imported petroleum products, making it vulnerable to fluctuations in global energy prices and disruptions to shipping and supply chains.
Puri said Mauritius was the first country outside South Asia to enter into such a comprehensive fuel supply arrangement with an Indian public-sector oil company, highlighting the growing energy relationship between the two countries.
The agreements also come as instability in West Asia and disruptions to shipping routes have added to concerns over energy security and fuel supplies.
ALSO READ | Petrol, Diesel Prices On August 20: Check New Fuel Rates In Mumbai, Bengaluru, Chennai, Kolkata And More
Mauritius imports all of its refined petroleum requirements, with its fuel import bill running into more than $1 billion annually. The new arrangement with India could provide the country with a more predictable source of supply, although the volumes and commercial terms of the agreements have not been disclosed.
The government-to-government memorandum also provides a broader framework for future cooperation in the oil and gas sector.
The agreements further strengthen India's role as an energy supplier in the Indian Ocean region and expand bilateral cooperation with Mauritius, a key maritime partner for New Delhi.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
