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Fuel consuming prices are for the time being completely controlled by the HAT through the imposition its legal measure. Since it is not going to last until the age of Ragnarok, Andry Rajoelina tackled the quest for another solution. He went to Qatar in order to find suppliers able to compete with the oil companies already operating in Madagascar. “We have a fuel supply related problem, we looked for solutions in order to lower consuming prices”, he declared.
Would the HAT be trying to get a cover up, could the locally operating suppliers dare the struggle, and refuse to apply politically correct prices wanted by the régime? Andry Rajoelina had revealed that suppliers requested a 300 ariary per liter high rise, and got 50 at the end.
“The state didn’t show any evidence of weakness, on the contrary, we do not bow before the oil supplying companies’ will, the state claimed a 50 ariary high rise “. he declared, as if his ruling power conceded nothing at all
According to Andry Rajoelina, foreign companies refused to provide price grids. He announced a potential plus 3% high rise, far higher than the single percent even in the Middle East´s politically hottest countries. Suppliers are applying a plus 15% high profit margin against a normal 5 to 8% high one for buying and retailing, still according to the chief of the HAT.
Andry Rajoelina promise a trade ministry related institution to keep control over prices. “The state will be the one to decide. We insured the availability of 240 billions of ariary of foreign currency”.
The operating suppliers have not yet directly replied, but some comments hinted their concerns. The ruling is not supposed to poke its nose in the trade of things it does not own. Andry Rajoelina expressed thereupon a deep regret: “the privatization of the oil supply process was an error “.
The HAT is preparing to face up to a general crisis. They would receive subsidies from the state, the difference between former and new prices. When will this be starting? Now? or when suppliers will have imposed new pricing grids on August 2011? The law deemed to be altered in order not to drop credibility makes the HAT win one thing: reprieve
In the run of a conflict with oil distribution companies about consuming prices, the chief of the HAT made a business trip in Qatar in order to find alternatives. There was no leaks yet concerning incoming contracts, but Andry Rajoelina doesn't make a secret of his will to introduce competition against quite well united distribution companies. The legal side of it might happen to be far more complicated for the ruling power.