On January 17th the minister of industry and commerce, Showkutally Soodhun, announced that the government had opened discussions with an Indian company, Mangalore Refinery and Petrochemicals (MRPL), over the construction of a US$2bn oil refinery in the south of the island. According to Mr Soodhun, the refinery could be operational by 2015. The project's aims are to diversify the economy and to reduce Mauritius's dependence on imported fuel, which accounts for 19% of imports and makes the economy vulnerable to imported inflation.

The project would be largely financed by the government, with some contribution from MRPL. It is likely to be opposed by environmental campaigners, who succeeded in persuading the government to adopt green policies in the 2008 budget. They are already concerned about the environmental effect of new holiday complexes and expanding transport infrastructure.