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Home Economy

DNA members fear abolition of fuel subsidy after 15 percent wage increase

Preveen Hanoeman by Preveen Hanoeman
Saturday, 10 Oct 2026 - 8:51 am
in Economy
DNA web 1 DNA members have expressed concerns that the announced 15 percent wage increase for civil servants could lead to the abolition of the fuel subsidy, with possible consequences for prices and manufacturing companies.

Several DNA members expressed concerns on Monday about the 15 percent wage increase, which will take effect at the end of September for civil servants and equivalent categories.

They fear that after this increase, the government will discontinue the fuel subsidy. “Will the fuel subsidy be abolished? And what effects will that have on production companies and prices in stores?” DNA member Rabin Parmessar asked the government in parliament on Monday.

Parmessar wanted to know whether the increase takes inflation, exchange-rate developments and their impact on prices in stores into account. He further asked whether pensions and AOV will also be increased, because the government must not forget the elderly. The NDP parliamentary group leader wanted to know whether the government would immediately proceed with abolishing the fuel subsidy. “The wage increase could work to our disadvantage, and we do not want that.”

Krishnakoemari Mathoera also wanted clarity. She wanted to know what the financial impact of this increase would be on the state budget per month and per year. “Has all of this been calculated?” The DNA member asked where the state would obtain the money to pay for this. “Will the expenditure be financed through loans or from the 2026 budget? From which budget item will the money come?”

Ronny Asabina wanted clarity: “We want to know from which fund this increase will be financed. We hope we do not have to relate this to the abolition of the fuel cap.”

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