Weathering the Global Energy Storm: Keeping Fuel Price adjustment to a Minimum

As global oil prices remain volatile following the Middle East crisis, Seychelles has introduced a measured adjustment to fuel prices (Motor gasoline (“mogas”)) and Gas Oil), while continuing efforts to limit the impact on domestic consumers.

Effective Monday 13th April 2026, the pump price of Mogas (or commonly known as “Benzene”) has moved from SCR20.18 to SCR21.18 per litre, while Gasoil (or commonly known as “Diesel”) has adjusted from SCR20.19 to SCR21.19 per litre.

According to SEYPEC’s CEO, Captain Adrian Mondon, the SCR1.00 increase remains among the lowest seen in the region. “This reflects a deliberate and measured response to ongoing pressures in the international market” he said. “While we have kept this adjustment to a minimum, current trends indicate continued upward pressure in the weeks ahead, and we will continue to respond in a careful and measured way.”

An unresolved global crisis: no immediate end in sight

In March 2026 SEYPEC helped to describe the outbreak of the Gulf conflict and its immediate consequences for global energy markets. Today, this update confirms that the situation has not resolved and, in several respects, has deepened. The Strait of Hormuz, the narrow waterway through which approximately 20 per cent of the world's daily oil and gas supply must pass, remains largely closed.

The past week illustrates just how volatile this market has become. On 8 April, crude prices crashed by approximately 16 per cent in a single trading session when a tentative US-Iran ceasefire was announced, only to recover sharply the very next day as the fragility of that agreement became apparent. By Friday 10 April, Brent was back above USD 96 per barrel. Saudi Arabia confirmed in the same week that Iranian drone and missile attacks on its energy infrastructure had taken approximately 600,000 barrels per day of Saudi production capacity offline, a development that adds fresh supply pressure to an already strained global market. As the International Energy Agency noted in its March 2026 Oil Market Report, this remains the most significant disruption in the history of the global oil market.

One factor often overlooked in discussions about fuel prices is the role of the foreign exchange rate. Because petroleum products are traded internationally exclusively in US Dollars, the value of the Seychelles Rupee against the Dollar directly determines what SEYPEC pays for every cargo it imports — regardless of what is happening to the oil price itself. When the Rupee weakens, the cost of an imported cargo rises in Rupee terms, even if the crude price in Dollars has not moved.

The ongoing Middle East conflict has compounded this pressure, as global investors have flocked to the US Dollar as a safe-haven currency, squeezing the currencies of importing nations in the process. This exchange-rate effect is entirely outside the control of SEYPEC or the Government — it is a direct consequence of the geopolitical crisis, and its impact extends well beyond fuel, affecting the cost of every imported product the country relies upon. As a nation that imports the overwhelming majority of what it consumes, Seychelles faces a dual burden: rising commodity prices in Dollar terms and a weaker Rupee to pay for them — and it is precisely this compounded challenge that SEYPEC navigates every day on behalf of the Seychellois public.

For Seychelles, which imports all of its fuel, these developments create sustained upward pressure on costs. Rising crude prices, higher shipping costs and a stronger US dollar continue to influence the price outlook.

A measured and forward-looking approach

SEYPEC, working closely with the Government, has taken steps to manage these pressures carefully. These include negotiating supply terms, planning fuel purchases in advance, and optimising logistics to reduce cost exposure.

“The adjustment reflects the broader market environment and the need to respond prudently to evolving conditions,” Mr Mondon explained. “Our approach is to act in a timely and measured way as market conditions develop.”

A region under pressure

While Seychelles has adjusted prices by SCR 1.00 per litre, other countries have seen significantly higher increases in recent weeks.

In South Africa, fuel prices have risen by the equivalent of several rupees per litre since early April, with further increases expected. In Réunion, regulated prices rose sharply at the start of the month, while Mauritius has already implemented increases in diesel and is expected to follow with gasoline.

This contrast highlights the extent to which Seychelles has been able to cushion the impact of the global energy shock.

Beyond our immediate neighbours, the picture globally is even more sobering. Countries including Bangladesh and India have experienced acute petroleum shortages, daily purchasing limits, and price spikes of 20 to 30 per cent within a matter of weeks — the direct consequence of supply chains buckled by the Hormuz closure and the global scramble for alternative supplies. Queues at petrol stations and rationing of fuel are realities in nations far less well-positioned than Seychelles to weather this storm. SEYPEC is proud to report that no such conditions have arisen here — and is committed to ensuring they do not.

Full Assurance on Supply

SEYPEC has reassured the public that there is no shortage of fuel in Seychelles.

All products, including gasoline, diesel, jet fuel and LPG, remain fully available across Mahé, Praslin, La Digue and the outer islands. The company maintains adequate stock levels and has secured forward supply to meet national demand.

The Road Ahead

While the global situation remains uncertain, SEYPEC says it will continue to monitor developments closely and adjust prices when necessary.

“We remain committed to ensuring reliable supply and keeping price adjustments as measured and predictable as possible,” Mr Mondon said.