The new law on downstream petroleum activities has been declared constitutional. In essence, the text provides that the State may import hydrocarbons through an authorized entity.
The High Constitutional Court (HCC) has given its green light, without any reservations, to the promulgation of the law establishing the principles governing certain downstream petroleum activities by a State-authorized entity, while amending certain provisions of the law regarding the liberalization of the downstream petroleum sector.
The HCC thus validates the State’s assertive return to the operational aspect of the hydrocarbon sector. Implicitly, this law allows the State to directly import hydrocarbons via an entity it will authorize. While the content of the text adopted by the National Assembly on July 1st was previously difficult to access, the decision published on the HCC website provides insight into the sensitive points of the law.
The HCC asserts that the law respects the principles of freedom of enterprise and investment security provided for in Articles 37 and 38 of the Constitution. Regarding the mechanism of priority supply obligation to the authorized entity, the Court states that it does not aim to exclude other economic operators but rather to ensure the security and continuity of national supply in a context of international market instability.
Furthermore, the law guarantees a right of free and non-discriminatory access to essential infrastructure for the State-authorized entity, subject to the payment of transit fees under the control of the Malagasy Hydrocarbon Office (OMH). The HCC concludes that this regulated access regime does not excessively infringe upon the freedom of enterprise or the property rights of private logistics companies.
Captured & Published at: 2026-08-05 06:08:33 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/08/politique-energetique-la-hcc-valide.html
