Fuel Prices Adjustments as Global Oil Markets Surge: SEYPEC Cushions Consumers Amid Global Oil Shock
In light of recent events unfolding across the middle east and with a view to protect Seychellois consumers from the direct impact of the crisis Seypec has proposed an increase in prices at the pump but has not gone as far as to pass the total cost of the fuel on to our consumers. Instead of consumers seeing an increase that could have been up to SCR 5 on average from midnight today, SEYPEC’s customers on Mahé, Praslin and La Digue will only see an increase of 2.00 at the pump. Behind this adjustment lies the Government’s continuous effort to cushion the direct impact of the crisis on our consumers and the country. Seypec urges everyone to be conscious on the current global market situation and to be responsible in relation to that.
Despite today's increase, fuel prices in Seychelles remain below the historic record levels reached during the global energy crisis of 2022. At that time, motorists paid SCR 25.61 per litre for Gasoil and SCR 25.20 per litre for Mogas. ‘Even after today's adjustment, the new retail prices remain below those peaks,’ SEYPEC CEO Adrian Mondon explains. ‘This demonstrate that the present increase, although significant, has not yet surpassed the unprecedented highs experienced only a few years ago. Viewed another way, the increase is also more moderate than its nominal value might suggest.’
For motorists on Mahé, the SCR 2.00 adjustment represents an increase of approximately 8.8% for Mogas and 8.6% for Gasoil. On Praslin and La Digue, where prices have also increased by SCR 2.00, the percentage adjustments are around 9%. While any increase affects household budgets and business operating costs, presenting the adjustment in percentage terms provides important perspective. It is an increase that reflects extraordinary international pressures rather than any change in domestic policy. The driving force behind these higher prices is neither local demand nor operational costs within Seychelles. It is the rapidly changing international oil market.
‘Over the past several months, the geopolitical confrontation involving Iran and the United States, together with continuing instability across the Middle East, has injected considerable uncertainty into world energy markets,’ CEO Mondon adds. ‘The possibility of disruptions around the Strait of Hormuz, through which almost one-fifth of the world's traded oil passes, has become a major concern for international traders. Financial markets dislike uncertainty. Whenever there is a perceived risk that supplies could be interrupted, crude oil prices rise almost immediately, even before any physical shortage occurs.’
The crude oil is only one part of the equation. Refined petroleum products have also become more expensive because shipping companies are charging higher freight rates, marine insurers have increased premiums for vessels operating in sensitive regions, security costs have escalated and international traders are paying more to secure future supplies. Every additional dollar paid at the refinery or on the ocean ultimately influences the cost of the fuel that reaches importing nations such as Seychelles.
For an island state that imports every litre of its petroleum products, these global realities cannot simply be ignored. Seychelles does not determine international crude oil prices. It purchases fuel in the same competitive global marketplace as every other importing nation. When world prices rise sharply, the cost of bringing fuel safely to Seychelles inevitably rises as well. Yet, despite these mounting pressures, one remarkable fact often escapes public attention. Consumers are still not paying the full international cost of their fuel.
SEYPEC continues to cushion the impact of international price increases by maintaining retail prices below the actual cost of imported products. Current calculations show that the true landed cost of Gasoil is approximately SCR 34.69 per litre, while motorists on Mahé will pay SCR 25.19 after the latest adjustment. Similarly, the actual cost of Motor Gasoline stands at around SCR 25.70 per litre, while the retail price will be SCR 24.68. ‘In other words, Seychellois consumers continue to benefit from a pricing mechanism that absorbs part of the international cost rather than passing the full burden directly to motorists. This reflects a deliberate policy of balancing commercial reality with national affordability.’ CEO Mondon says.
Five months into an international socio-economic crisis that has unsettled global energy markets, SEYPEC continues to fulfil one of its most important national responsibilities: safeguarding Seychelles' energy security. Through prudent procurement, forward purchasing and disciplined stock management, the Company has ensured that the country maintains sufficient fuel reserves for between three and six months, providing confidence that households, businesses, transport services, hospitals, schools and essential industries will continue to receive uninterrupted supplies.
The accompanying price trend over the past eighteen months tells an equally compelling story. Throughout most of 2025 and the early months of 2026, retail prices for both Mogas and Gasoil remained remarkably stable. Despite fluctuations in international crude oil prices, local pump prices moved only within a relatively narrow range, hovering around SCR 20 per litre for much of the period. Such stability did not occur by chance. It reflected continuous monitoring of international markets, careful purchasing strategies and responsible price management.
Only during the past few months has the chart shown a pronounced upward movement. The steep increases recorded during May, June and now July 2026 mirror the sharp escalation in global oil prices following renewed geopolitical tensions. Rather than representing a sudden or isolated domestic decision, today's increase forms part of a broader international trend affecting virtually every oil-importing nation.
At SCR 24.68 per litre, Seychelles' retail price for Mogas remains considerably lower than that paid by motorists in both Réunion (SCR 31.19) and Mayotte (SCR 33.59). Drivers in those neighbouring islands currently pay between 26% and 36% more than consumers in Seychelles.
It is true that fuel remains less expensive in Mauritius (SCR 20.39) and Madagascar (SCR 17.76). However, direct comparisons should be made with caution. Fuel prices are influenced by many factors beyond the international oil price itself, including taxation policies, exchange rates, government subsidies, market size, purchasing volumes, transport costs and national pricing mechanisms. Larger markets often enjoy economies of scale that are simply unavailable to smaller island economies. What the regional comparison nevertheless demonstrates is that Seychelles continues to occupy a competitive middle position despite its unique logistical challenges and complete dependence on imported petroleum products.
Behind every litre sold at the pump lies a complex international journey, from crude oil production, refining and ocean transport to storage, distribution and retail delivery. Every link in that chain has become more expensive in recent months. ‘Against this backdrop, SEYPEC continues to pursue the difficult balance between commercial sustainability and social responsibility,’ CEO Mondon says. ‘The Company remains in constant consultation with Government, including through the Economic Monitoring Committee, to evaluate international developments and ensure that pricing decisions are taken responsibly and in the national interest.’
In uncertain times, energy security cannot be measured solely by the price displayed on a service station forecourt. It is measured by something even more fundamental: the confidence that fuel will continue to be available whenever the nation needs it. The latest price adjustment is therefore more than a reflection of rising international costs. It is also evidence of the ongoing effort to protect consumers from even greater increases while preserving the uninterrupted supply of the fuel upon which the Seychellois economy, its businesses and every family ultimately depend.
As global events continue to reshape the world's energy landscape, SEYPEC's commitment remains unwavering: to keep the country moving, to keep supplies secure, and to keep fuel prices as affordable as international realities responsibly allow.