India, Mauritius sign long-term fuel supply pact
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.
The long-term sales and purchase agreement between Indian Oil Corporation (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 tonnes 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.