India and Mauritius Sign Five-Year Fuel Supply Agreement with IOC

India and Mauritius have expanded their bilateral energy ties through a five-year sales and purchase agreement that makes the Indian Oil Corporation (IOC) the exclusive supplier of petrol, high-speed diesel, and aviation turbine fuel (ATF) for the island nation. The agreement was exchanged during Union Minister for Petroleum and Natural Gas Hardeep Singh Puri's official visit to Mauritius on August 20-21.

According to official statements, the long-term contract between IOC and Mauritius' State Trading Corporation is designed to secure reliable fuel supplies for Mauritius while mitigating exposure to global price volatility. This marks the first long-term supply agreement concluded by an Indian public-sector oil marketing company outside South Asia in recent years.

The partnership comes as nations work to reinforce energy security against ongoing global market disruptions, particularly stemming from instability in West Asia. India currently produces approximately 267 million tonnes of refined petroleum products annually across 23 refineries, operating as a net exporter of refined fuels with existing supply commitments to neighbouring countries like Nepal and Bhutan.

Alongside the fuel supply agreement, the two nations exchanged a government-to-government memorandum of understanding (MoU) aimed at broadening cooperation in the oil and gas sector. The framework encompasses petroleum product supplies, training, capacity building, and biofuels. During the visit, Minister Puri also held discussions with Mauritius Prime Minister Navinchandra Ramgoolam and several other cabinet ministers.

As part of the visit, Minister Puri and Mauritius Energy and Public Utilities Minister Patrick Gervais Assirvaden 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 project is intended to enhance local marine fuel infrastructure and expand India's participation in the regional energy supply chain.

Furthermore, the visit marked the launch of a Biofuels Country Landscape Policy framework developed in partnership with the Global Biofuels Alliance (GBA) Secretariat and Mauritius' Ministry of Energy and Public Utilities. Mauritius is a founding member of the GBA, an initiative launched during India's G20 presidency. The newly launched framework seeks to guide Mauritius in exploring biofuels as part of its ongoing energy transition.

"This long-term agreement between India and Mauritius demonstrates how public sector enterprises can build reliable, cross-border economic bridges while ensuring energy security. For businesses and nations alike, securing supply chains against global market volatility is critical for sustainable growth. Expanding into infrastructure and alternative energy frameworks like biofuels also opens up valuable avenues for long-term bilateral cooperation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes