Seychelles Lifts Fuel Prices by About SCR 2 a Litre as Cabinet Approves Recovery Framework

Source: https://statehouse.gov.sc/news/7159/government-adopts-phased-approach-to-fuel-pricing-while-continuing-to-cushion-global-impact

Released: 2026-07-31

VICTORIA, Seychelles. The Seychelles government has approved an Accelerated Recovery Framework that lifts domestic fuel prices by about SCR 2 a litre while keeping in place targeted support for the most exposed users, walking back the most generous emergency price intervention that has shielded motorists from the full force of a global energy shock.

Without the cushion built into the framework, the State House said, motorists would already be paying more than SCR 30 a litre at the pump. International fuel prices have kept climbing against the backdrop of ongoing geopolitical tensions, and Seychelles has so far absorbed part of the increase rather than pass it through in a single step. The new framework is meant to move the country gradually from emergency intervention towards a more sustainable commercial pricing model.

Cabinet approved the measure after a long sequence of softer steps designed to reduce national fuel demand before any price adjustment was considered. Early on, the government rolled out Energy Conservation Fridays, encouraging public officers to work from home where possible to cut commuting and electricity use.

When that did not produce the savings officials were looking for, the public service moved to earlier closing hours, with offices ending the working day at 2.30 p.m. The change was designed to lower electricity consumption, reduce operational costs and reduce fuel used in transport, all part of a broader national energy conservation effort.

Even so, the State House said, the continued escalation of global fuel prices made it impossible to sustain emergency intervention indefinitely. Cabinet therefore approved a gradual and carefully managed adjustment of about SCR 2 a litre on both mogas and gasoil, rather than transfer the full international cost to consumers in one jump.

Targeted support measures for vulnerable groups will continue as Seychelles moves away from the emergency fuel price support introduced during the height of the global energy crisis. Cabinet also said the framework is intended to strengthen the financial position of the Seychelles Petroleum Company, or SEYPEC, and to preserve the country’s capacity to maintain strategic fuel reserves and invest in critical fuel infrastructure.

The announcement drew a largely understanding response from members of the public interviewed by the Seychelles Broadcasting Corporation. Several motorists acknowledged that the increase was not unexpected, pointing to the conflict in the Middle East and its effect on global fuel prices. Many said these are external factors beyond Seychelles’ control and accepted that the country, like many others, must adapt.

Others expressed disappointment that the increase had become unavoidable, saying higher fuel costs will place additional pressure on household budgets and reduce what families are able to save. Some said fuel has become a significant monthly expense and feared the adjustment would tighten personal finances further.

The State House described the phased approach as part of a broader strategy to balance immediate relief for consumers with longer term economic resilience, so that today’s measures protect both the welfare of the population and the country’s energy security in the years ahead.