Mauritius cuts petrol pump prices to ease inflation

Mauritius cuts petrol pump prices to ease inflation

Mauritius will cut petrol pump prices to tame inflation, its finance minister said on Tuesday, a day after the Indian Ocean island’s Central Bank raised its benchmark repo rate for the same reason.

Pravind Jugnauth told parliament diesel costs would come down 5.3 per cent while unleaded fuel costs would be 3.9 per cent lower once the cut came into effect at 2000 GMT on Tuesday.

Mauritius, which imports all of its oil-based fuel requirements, was selling petrol at a government-controlled 51.3 rupees on Tuesday while diesel traded at 43.5 shillings.

“This will help curb inflationary pressures and maintain good conditions for a reasonable growth rate,” Mr. Jugnauth said.

Mauritius has been surprised by a faster-than-expected rise in consumer prices during the last six months, due partly to a shock 1 per cent repo rate cut in September amid what the Central Bank then called a benign rate of inflation.

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