Seychelles Fuel Prices Hit Lowest Level Since 2021 Amid Global Trade Tensions
VICTORIA, Seychelles — Global oil markets have been rocked by a continuous fall in prices, marking the gradual decline since mid-2022. In recent months, the fall has increased by a combination of escalating trade tensions between the world’s two largest economies, the United States and China, and a surprise increase in global oil production. Seychelles, like other oil-importing nations, is for now enjoying some of the lowest fuel prices since the Covid-19 crisis.
At the Seychelles Petroleum Company (Seypec), the local pump price is at its lowest since September 2021, when it stood at R19.81. According to industry analysts, the current decline reflects both the trade war and the increase in production. Saudi Arabia and Russia, the two largest producers within the OPEC+ alliance, announced they would collectively increase production by 411,000 barrels per day, easing supply concerns that had built up over the previous months.
Although environmental groups advocate for a reduction in oil dependency to meet climate goals, the immediate effect on Seychellois consumers and businesses has been positive, with transport operators, fishermen and households all reporting lower running costs. The government said it would continue to monitor global energy markets and consider fiscal measures to ensure that the benefit of lower prices is passed on to consumers. The Ministry of Finance, Economic Planning and Trade is also expected to publish a quarterly review of the impact of the price fall on the local economy.
