Gas on black market: the closure of gas stations will increase

About fifteen gas stations have closed in 2011. And in a big city like Antsiranana, only 4 of the 7 gas stations on the market are still working. According to an operator in the oil sector, the closure phenomenon will certainly be amplified in the future. He argues, moreover, that this problem will grow at the same time as the black market.

As such, it will affect not only the rural areas, where a liter of lamp oil is approaching 3000Ar in regions such as Amoron’i of Mania, Androy , and Analamanga, but will also reach the big cities. As the national average price advanced by the Observatory of Rice, which is also monitoring prices of other staple goods, goes over 2400 Ar/liter in the final months of 2011. Since then, this price continues to rise.

While the government has somewhat managed to keep the price at the pump at 1850 Ar/liter for several months, that does not mean that the oil problem is resolved. In fact, problems do really exist and they are easily felt in rural areas than they are in big cities. Consequently, rural population is the one who suffers the most from this instability of oil prices.

82% of them live below the poverty line, that is to say, living with an income of less than 2 500 Ar per day. And the majority of them need at least 300 to 500 Ar of oil per day for domestic lighting. Maintaining the oil prices at the pump by the government ultimately benefits the urban areas. But still, the country experienced a double-digit inflation in 2011, a very high cost of living in the history of the country. If the prices at the pump have increased, inflation would have been far more greater. However, the current situation could lead to more serious problems.