IOC Signs 5-Year Mauritius Fuel Deal: Why It Matters For Energy Security

Indian Oil Corporation (IOC) has signed a five-year agreement with Mauritius’ State Trading Corporation (STC) to ensure the island nation receives regular supplies of petrol, diesel and aviation fuel.

The agreement was announced alongside a broader government-to-government memorandum of understanding between India and Mauritius on cooperation in the oil and gas sector.

Petroleum and Natural Gas Minister Hardeep Singh Puri announced the agreements in a post on X on Thursday.

Under the arrangement, IOC will supply Mauritius with petrol, diesel, marine gas oil and aviation turbine fuel (ATF).

The long-term contract is expected to provide greater certainty over fuel availability while helping Mauritius manage price volatility and strengthen its energy security.

Puri said the agreement would support the country's mobility and connectivity requirements while contributing to its wider economic growth.

India-Mauritius Energy Partnership

The latest agreements build on an energy relationship that dates back to 2001, when Indian Oil began supplying Mauritius through its subsidiary, Indian Oil Mauritius Limited.

The new five-year arrangement is particularly significant against the backdrop of heightened volatility in global energy markets.

Disruptions linked to the West Asia conflict and the closure of the Strait of Hormuz have created concerns over petroleum supplies and contributed to shortages in some markets.

For Mauritius, securing a long-term supply arrangement with a major regional refining and marketing company provides an additional layer of certainty at a time when international fuel markets remain vulnerable to geopolitical disruptions.

For India, the agreement also reinforces its role as a dependable energy supplier to neighbouring and partner countries.

India’s Growing Refining Footprint

India has emerged as a major global refining hub, with total refining capacity of around 258 million tonnes a year, making it the world's fourth-largest refiner.

Indian refiners supply petroleum products to several neighbouring markets, including Bangladesh, Nepal, Bhutan and the Maldives, while also exporting fuel to markets in Southeast Asia and Europe.

According to data from the Petroleum Planning and Analysis Cell, India exported $16.74 billion worth of petroleum products during April-June, the first quarter of the current financial year.

The government is also looking to expand the country's refining capacity further. National refining capacity is targeted to exceed 309 million tonnes annually by 2032.

The Mauritius agreement therefore comes as India seeks to deepen its position as a regional supplier of refined petroleum products while strengthening energy partnerships with countries facing exposure to global fuel-market disruptions.