India, Mauritius sign five-year fuel supply agreement

India and Mauritius have deepened energy ties through a five-year agreement under which Indian Oil Corporation will supply Mauritius' entire import requirement of petrol, diesel and aviation turbine fuel, alongside wider cooperation in oil and gas, infrastructure and biofuels

New Delhi: India and Mauritius have deepened their energy partnership with a five-year agreement under which Indian Oil Corporation will supply the island nation’s entire import requirement of petrol, diesel and aviation turbine fuel, strengthening New Delhi’s role as a key energy-security partner in the Indian Ocean.

The agreement was exchanged during Petroleum Minister Hardeep Singh Puri’s official visit to Mauritius on August 20-21, alongside a government-to-government memorandum of understanding (MoU) to expand cooperation in oil and gas, including petroleum product supplies, training and capacity building, and biofuels.

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The long-term sales and purchase agreement between IOC and Mauritius’ State Trading Corporation is designed to provide Mauritius with assured supplies and reduce its exposure to price volatility, an official statement said.

This, it said, was the first long-term supply agreement concluded by an Indian public-sector oil marketing company outside South Asia in recent years.

Under the pact, “IOC will supply the entire import requirement of Mauritius of motor spirit (petrol), high speed diesel (diesel) and aviation turbine fuel (ATF).” Separately, IOC said the 27,500-tonne bunker fuel storage facility at MAP Land in Mer Rouge, Mauritius, has been built at an investment of USD 25 million. “The facility will significantly boost IOML’s bunkering capabilities and Mauritius’ ambitions as a strategic bunkering hub. As Mauritius charts new horizons in its Blue Economy, IndianOil is proud to power the journey ahead.” The agreement comes as countries seek to strengthen energy security against disruptions in global fuel markets, particularly amid continuing instability in the West Asia region.

India, which has emerged as a major refining hub, produces about 267 million tonne of refined petroleum products annually from 23 refineries and is a net exporter of refined fuels. It already supplies petroleum products to neighbouring Nepal and Bhutan and exports significant volumes to other markets in the region and beyond.

The ministry said India continued to meet its supply commitments to Nepal and Bhutan even during the ongoing West Asia crisis, underscoring its position as a reliable supplier to the region.

“The agreement with Mauritius positions India as the country’s anchor fuel supplier and strengthens India’s strategic and economic footprint in the Indian Ocean region,” the ministry statement said.

The pact also institutionalised the broader energy relationship between India and Mauritius, with the MoU providing a framework for cooperation across conventional fuels and emerging areas such as biofuels.

Puri met Mauritius Prime Minister Navinchandra Ramgoolam on August 20, with the two sides exchanging the oil and gas MoU and witnessing the IOC-STC agreement.

During the visit, Puri also held meetings with Energy and Public Utilities Minister Patrick Gervais Assirvaden, Commerce and Consumer Protection Minister John Michael Tzoun Sao Yeung Sik Yuen, and Foreign Affairs, Regional Integration and International Trade Minister Dhananjay Ramful.

Puri and Assirvaden also participated in a groundbreaking ceremony for India Oil (Mauritius) Ltd’s 27,500-tonne marine bunker fuel storage facility at Mer Rouge in Port Louis.

The facility is expected to strengthen Mauritius’ marine fuel infrastructure and further expand India’s presence in the island nation’s energy supply chain.

The oil and gas MoU also provides for cooperation in biofuels through exchanges of knowledge, research and training.

Mauritius is a founding member of the Global Biofuels Alliance (GBA), an initiative piloted by India and launched during New Delhi’s G20 presidency.

As part of its country engagement programme, the GBA Secretariat has partnered with Mauritius’ Ministry of Energy and Public Utilities to develop a Biofuels Country Landscape Policy framework for the country.

Puri and Assirvaden jointly witnessed the launch of the framework on August 21, marking a step towards exploring the role of biofuels in Mauritius’ energy transition.

The agreements broaden India’s role in Mauritius beyond individual fuel shipments to a longer-term partnership covering supply security, infrastructure, capacity building and alternative fuels, as New Delhi seeks to expand its energy and economic engagement across the Indian Ocean region.