Changes have been reported at the pump, but only for one product: kerosene. While the price of kerosene has risen from 3,710 Ariary per liter to 3,910 Ariary per liter, the prices for gasoil and gasoline remain identical to those posted in September: 4,860 Ariary per liter for gasoil and 5,300 Ariary per liter for gasoline. According to statements made by the Prime Minister on TVM on Sunday, the prices of these two products are expected to remain stable “at least until December.”
“If we increase fuel prices, it will inevitably have consequences on inflation,” explained Mamitiana Rajaonarison during his special broadcast on Sunday evening. He added that “although Madagascar has agreed with the International Monetary Fund (IMF) to apply the automatic price adjustment mechanism, we are making efforts to ensure these prices do not rise.” According to him, this decision should be “maintained at least until December.”
However, prices are expected to change starting in January 2027. The resumption of the automatic fuel price adjustment mechanism by January 2027 is part of the IMF’s recommendations following the third and fourth reviews of the Extended Credit Facility and the Resilience and Sustainability Facility programs. The IMF suggests that authorities should instead consider accompanying measures to limit the impact of fuel price hikes on the most vulnerable populations.
In its latest statement, the IMF insists on “the full application of the automatic fuel price adjustment mechanism by January 2027, with targeted mitigation measures for the most vulnerable populations.” For this Bretton Woods institution, this “will allow for the reallocation of modest public resources toward education, health, and social protection. It will also help limit fiscal risks in the face of high volatility in global oil prices.” It also invites the authorities to “ensure the proper functioning of the fuel market, by ensuring that distributors meet their tax obligations in a timely manner and that the State fulfills its own obligations.”
In addition to freezing the automatic fuel price adjustment mechanism, the State is banking on cheaper fuel supply contracts to keep fuel prices low. The idea is to find suppliers that do not depend on the Middle East for supply, Mamitiana Rajaonarison specified on Sunday evening. The responsibility for launching the international call for tenders for fuel supply to the Malagasy market has already been withdrawn from the Groupement des pétroliers de Madagascar (GPM) and entrusted to the Office malgache des hydrocarbures (OMH).
Captured & Published at: 2026-10-27 08:53:52 (Madagascar Local Time EAT)
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