The Malagasy government has reactivated the automatic fuel price adjustment mechanism, a measure suspended since April 2026, in order to better regulate pump price fluctuations in the context of volatile international markets.
Decided by the Malagasy government, the reinstatement of the automatic adjustment mechanism covers major petroleum products: unleaded gasoline (SP95), diesel, and kerosene. This measure, approved during Wednesday’s Council of Ministers meeting, provides for a monthly revision of pump prices based on international oil prices, the exchange rate of the ariary, as well as import and distribution costs.
“This is a continuation of the mechanism applied since the first half of 2026, which was suspended in April due to a sharp rise in international prices that could not be fully passed on to the pump,” explained Cydolain Raveloson, Director General of the Malagasy Office of Hydrocarbons (OMH).
However, the system includes strict regulations, with adjustments capped at 200 ariary per liter—both for increases and decreases—to limit sudden price shocks for consumers.
“This mechanism was temporarily suspended due to the surge in global oil prices. Today, it is being reactivated as part of commitments made to technical and financial partners, notably the IMF,” the OMH Director General added.
The mechanism, established in 2025, had been in effect before its suspension in April 2026—a decision taken to buffer the impact of rising international prices on household purchasing power. Despite this freeze, several adjustments were noted in previous months.
Pump prices had reached approximately 4,860 ariary for diesel and 5,100 ariary for unleaded gasoline amid global energy market tensions.
With the return of this system, authorities intend to gradually bring local prices closer to real supply costs while maintaining a degree of stability for households and transporters.
Last April, Radonirina Lucas Rabearimanga, Minister of Energy and Hydrocarbons, reiterated the logic behind the system: “In the current situation, if the automatic price adjustment mechanism is maintained, we must implement a gradual increase of 200 ariary per month until December.”
Ihariana Sarobidy
Captured & Published at: 2026-07-03 05:43:33 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/07/hydrocarbures-le-gouvernement-reactive.html
